Japan's business-to-business services inflation picked up in February on a tourism rebound and rising labor costs, data showed, offering the central bank hope that steady wage hikes would aid in sustainably hitting its 2% inflation target.
With inflation already exceeding the 2% target due largely to rising raw material costs, the second consecutive monthly services acceleration may keep alive market expectations the Bank of Japan will eventually whittle down its massive stimulus under new Gov. Kazuo Ueda.
The services producer price index, which measures the prices companies charge each other for services, rose 1.8% in February from a year earlier, up from a 1.6% gain in January, BOJ data showed Monday.