A leading indicator of service-sector inflation held steady near 3% in October, data showed on Tuesday, reinforcing the central bank's view that rising wages are prodding more firms to pass on higher labor costs through price hikes.
The Bank of Japan is closely watching service-sector inflation for clues on whether demand-driven price gains are broadening enough to justify raising interest rates further.
The data will be among factors the BOJ will scrutinize at its next policy meeting in December, when some analysts expect it to hike interest rates from the current 0.25%.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.