Japan's corporate services inflation accelerated more than anticipated in July, reinforcing expectations that the Bank of Japan will raise interest rates next month.
The Corporate Services Price Index, which tracks prices companies charge one another for services, increased 3.6% from a year earlier, exceeding market forecasts of 3.2%, according to data released Wednesday by the central bank. The reading follows a revised 3.4% rise in June.
The acceleration reflects sustained upward pressure on business costs, driven in part by the yen's depreciation and elevated import prices. Companies have increasingly passed these higher expenses to customers, contributing to broader inflationary trends.
Consumer inflation in Japan also accelerated in July, though government subsidies have partially shielded households from the full impact of price increases. The persistence of inflation has strengthened market conviction that the Bank of Japan will implement a rate hike at its September policy meeting.
The index measures transaction prices between businesses for services such as logistics, advertising, and professional consulting, providing an early indicator of consumer price trends.
