The latest reading cooled from the prior 3.3%, suggesting price pressures may be easing at the margins in Japan’s services sector.
Japan’s services producer price index, or services PPI (prices companies charge each other for services), came in at 3.2%, missing the 3.4% forecast and cooling from the prior 3.3% reading. The softer-than-expected print points to some easing in price pressure at the margins, a signal markets often watch for clues on broader inflation trends and the policy backdrop in Japan.