Japan's January Service PPI Rises by 2.6% Year-on-Year

Japan's service producer price index (PPI) increased by 2.6% in January compared to the previous year, maintaining the same growth rate as December. According to RTHK, this rise was primarily driven by higher costs in construction projects and temporary staffing services. The central bank has indicated that if consumer prices continue to exceed 2% for nearly four consecutive years, and if prices steadily rise alongside wages, borrowing costs may be further increased. Bank of Japan Governor Kazuo Ueda has stated that when considering the timing of the next interest rate hike, close attention will be paid to wage growth prospects and whether more companies will pass on higher labor costs to consumers.