Japan’s business services inflation slows in June

FILE PHOTO: Employees of Suzette Holdings Co. work at the shop in Tokyo, Japan April 27, 2023. REUTERS/Kim Kyung-Hoon/File Photo

TOKYO (Reuters) – Japan’s business-to-business service inflation slowed in June, data showed on Wednesday, suggesting that companies remained slow in passing on rising labour costs despite a tight job market.

The services produce price index, which measures the prices companies charge each other for services, rose 1.2% in June from a year earlier, Bank of Japan (BOJ) data showed, slowing from a revised 1.7% gain in May.

The data comes ahead of the central bank’s closely watched meeting which concludes on Friday, when the board will release fresh quarterly growth and inflation forecasts.

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