Japan's Corporate Services Price Index rose 3.6% year on year to 115.1 in July, based on the preliminary 2020 average of 100, accelerating from June's revised 3.4% increase. The Bank of Japan (BOJ) said the measure, which tracks prices for business-to-business services such as transportation and advertising, showed companies continuing to pass higher labor costs through to transaction prices amid a tight labor market. The broader services-price gains support the BOJ's view that a virtuous cycle between wages and prices is spreading beyond goods. Underlying inflation measures also remained firm: the July core CPI excluding special factors rose 2.3%, its 22nd consecutive month at or above 2%, while the core-core CPI excluding special factors accelerated to 2.2%. The trimmed mean returned to 2.0% for the first time since November 2025. The data reinforced market expectations for an additional BOJ rate hike as soon as September, with upcoming wage data and surveys of corporate price-setting behavior likely to shape policy discussions.