Japan’s Services Producer Prices Hit 14-Year High in April

May 28, 2018

Tokyo- Japan's service producer price index climbed to the highest level in 14 years and one month in April, chiefly reflecting rises in fuel prices and labor costs, Bank of Japan data showed Monday.

The index, which measures costs for services provided to corporate customers, rose 0.9 pct from a year before to 104.6 against 100 for the base year of 2010, hitting the highest level since 104.9 logged in March 2004, the BOJ said in a preliminary report.

The index rose for the 58th straight month, with the pace of growth accelerating from 0.5 pct in March.

In April, prices of ocean freight transportation fees jumped 7.0 pct on the back of higher fuel prices. Road freight transportation fees grew 3.6 pct, pushed up by truck driver shortages in parcel delivery and other logistics services companies.

Accommodation charges increased 1.6 pct, temporary employment agency service prices rose 2.1 pct and security service fees gained 3.1 pct

Newspaper advertising fees grew 8.4 pct, but Internet ad fees fell 2.6 pct.

The sharp rise in the service producer price index for April was led by price increases stemming from higher labor costs, an official of the BOJ's Research and Statistics Department said. The central bank is closely monitoring whether the trend will spread, the official added. Jiji Press