Japan Services Producer Prices Rise 3.7% in September, Keeping BOJ on Rate-Hike Path

Japan's services producer price index rose 3.7% year-on-year in September, up from a revised 3.5% gain in August, Bank of Japan data showed Tuesday, signaling mounting price pressures that likely keep the central bank on track for further interest rate hikes. The index tracks prices companies charge each other for services and is closely watched by the BOJ for clues on how extensively firms are passing rising labor costs into service-related prices. The BOJ is expected to hold its policy rate steady at 1.25% at a two-day meeting concluding Friday, while signaling readiness to continue raising borrowing costs amid persistent price pressures.