Japan’s service prices rise for 8th straight month as freight cost spikes

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TOKYO, Nov 25 (Reuters) – The prices Japanese firms cost one another for companies rose 1.0% in October from a 12 months earlier, their eighth straight month of beneficial properties and an indication inflationary strain was constructing attributable to increased world commodity prices.

The companies producer worth index hit 105.4 in October, the very best since November 2001, Bank of Japan (BOJ) knowledge confirmed on Thursday.

But the achieve was far smaller than an 8.0% spike in wholesale items inflation in October, suggesting sluggish wage development will average any rise in shopper prices. learn extra

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The key driver behind the October companies worth rise was transportation charges, as sturdy world demand for uncooked supplies allowed delivery corporations to move on increased gas prices to purchasers.

The cost of ocean freight transportation spiked 52.0% in October from a 12 months earlier after a 34.9% achieve in September, the info confirmed.

The tempo of declines in resort charges slowed to 2.9% in October from 7.4% in September, an indication consumption was selecting up after the Sept. 30 lifting of curbs to fight the COVID-19 pandemic.

“Corporate services prices are recovering gradually, with some sectors showing demand picking up due to the lifting of curbs. But the move hasn’t broadened much on lingering caution over the pandemic,” Shigeru Shimizu, head of the BOJ’s worth statistics division, instructed a briefing.

Japan’s economic system has lagged different superior nations in recovering from pandemic doldrums, discouraging corporations from passing on increased uncooked materials prices to customers.

Core shopper prices rose simply 0.1% in October from a 12 months earlier, even as gas prices accelerated on the quickest tempo in additional than a decade. learn extra

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Reporting by Leika Kihara; Editing by Sam Holmes

People wearing protective masks, amid the coronavirus disease (COVID-19) pandemic, make their way at a shopping district in Tokyo, Japan, August 25, 2021.   REUTERS/Kim Kyung-Hoon