Japan's B2B service inflation remains steady at 2.1% in February due to rising labor costs and potential wage increases.

Japan's annual business-to-business service inflation remained steady at 2.1% in February, as companies continued passing on rising labor costs due to prospects for sustained wage gains. The Bank of Japan's data indicated that service price increases could replace cost-push inflation as a key driver of price gains, helping maintain inflation at its 2% target. Service price movements are closely monitored by the BOJ as a key indicator of whether wages and inflation are rising in tandem, a prerequisite for raising interest rates.

March 26, 2024
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