Japan’s June services producer prices rise as Iran war keeps freight costs high

[TOKYO] Japan’s services producer price index rose 3.2 per cent in June from a year earlier, central bank data showed on Monday (Jul 27), a sign of broadening inflationary pressure that will keep alive market expectations for further interest rate hikes.

The annual rise in the index, which tracks the price companies charge each other for services, followed a revised 3.4 per cent gain in May.

The increase was driven by continued gains in transportation costs, which rose 5.3 per cent in June from a year earlier, as rising fuel prices and supply disruptions from the Middle East conflict kept ocean and air freight charges elevated, the data showed. REUTERS