A leading indicator of Japan's service-sector inflation held steady at 2.7% in August, data showed on Wednesday, underscoring the central bank's view that rising wages are prodding more firms to pass on higher labor costs through price hikes.
Service-sector inflation is being closely watched by the Bank of Japan for clues on whether demand-driven price gains are broadening enough to justify raising interest rates further.
The August year-on-year gain in the services producer price index, which measures the price companies charge each other for services, matched a revised 2.7% gain in July, BOJ data showed.
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