Japan services producer prices rise 3.7 percent in September

Japan's services producer price index rose 3.7 percent from a year earlier in September, accelerating from a revised 3.5 percent in August, while the index excluding international transportation held at 2.9 percent, the Bank of Japan's preliminary release showed on Tuesday.

Why it matters: The acceleration sits in ocean freight rates rather than in domestic services, so the release adds little pressure on the Bank of Japan ahead of its October 29 to 30 meeting, where a hold is expected, beyond confirming that services inflation is running near 3 percent.

Data as of Bank of Japan preliminary release for September 2026, for release 8:50 a.m. Tuesday, October 27, 2026, Japan time, read in full in this run. All figures are from that primary document. No survey consensus for this index was in the pool. Developing item.

Japan’s services producer price index rose 3.7 percent from a year earlier in September, up from a revised 3.5 percent in August, and rose 0.3 percent in the month to 115.5, the Bank of Japan said in its preliminary release. Ocean freight transportation did most of the work: its prices rose 97.7 percent from a year earlier, against 74.6 percent in August, and the transportation and postal activities group rose 8.4 percent, contributing 1.36 points of the 3.7 percent headline increase. Hotel prices rose 9.7 percent from a year earlier, after 1.6 percent in August, while advertising services fell 5.2 percent and subtracted 0.23 points.

The domestic picture was steadier. Excluding international transportation, the index rose 2.9 percent from a year earlier, the same rate as in August, and services with a high labour cost ratio rose 2.6 percent. The release lands two days before the Bank of Japan’s October 29 to 30 policy meeting, at which the bank is expected to hold its rate at 1.25 percent, as this site reported on October 25.

Japan services producer prices rise 3.7 percent in September

Sources