Japan’s business services inflation accelerates in November By Reuters

TOKYO (Reuters) – Japan’s main service sector inflation index rose to 3.0% in November, accelerating for a second straight month, data showed on Wednesday, supporting the central bank’s view. that rising wages cause some firms to pass on higher costs. .

Service sector inflation is being watched closely by the Bank of Japan for clues as to whether demand-driven inflation is increasing enough to justify further interest rate hikes.

November’s annual gain in the index of the price of goods and services, which measures the price companies charge each other for services, accelerated from 2.9% in October, the data the BOJ indicated.

The BOJ ended negative interest rates in March and raised the short-term policy rate to 0.25% in July on the view that Japan is making steady progress towards its 2% target .

Governor Kazuo Ueda said the BOJ will keep raising rates if inflation is on track to hit 2% going forward.