Posted 11/27/2023, 3:07:18 AM
Japan Service Sector Inflation Accelerates on Labor Shortage, Tourism Recovery
- Japan's business-to-business service inflation accelerated to 2.3% in October, reflecting tight labor market and rising wages
- Price hikes seen in information/communication, machinery repair, worker dispatching due to higher labor costs
- Surge in tourism drove 49.9% increase in hotel fees
- Data suggests progress toward sustained inflation accompanied by wage growth, which BOJ wants before policy change
- With inflation above 2% target for over a year, companies face pressure to hike wages, expected to persist into 2023 spring talks