Surge in Japan wholesale services inflation driven by a tight job market, inbound tourism

Earlier today we had the data for ‘wholesale’ services price inflation in Japan for coto:

Reuters have posted recap points on the data:

  • business-to-business
    service inflation accelerated in October
  • a tight job market
    lifted labour costs
  • underscoring a broadening of price
  • surge in inbound tourism drove up hotel fees 49.9%

And this:

  • The data suggest Japan’s economy is making progress towards
    achieving sustained rises in inflation accompanied by solid wage

Wage growth driving inflation is what the Bank of Japan wants to see before it pivots away from negative rates. The Bank says its awaiting the outcome of Spring wage talks. there is some speculation i  the market that meaningful change could come from the Bank in April.

Bank of Japan
Bank of Japan

This article was written by Eamonn Sheridan at Source