The pace of gains in Japan's service prices for businesses slowed in June by the most since October 2020, ahead of the central bank's policy decision meeting this week.
A measure of service prices faced by Japanese firms stood at 1.2%, down from 1.7% in May, the Bank of Japan reported Wednesday. Analysts had forecast a cooling of price growth to 1.5%. From the prior month, prices declined 0.2%.
The figures are the latest indication of inflation peaking in the world's third largest economy. Service prices are seen by economists as an indication of how price gains are spreading in the wider economy.
Earlier this month, a gauge of material costs also decelerated in June. The latest reading of Tokyo price growth, due on Friday, is expected to show that core inflation in the capital slowed below 3% for the first time since September this month. The BOJ has said that inflation would peak as import-driven cost pressure eases.
The central bank is expected to maintain its main policy framework on Friday, while some economists expect an adjustment to the bank's yield curve control program. Governor Kazuo Ueda has indicated that the bank remains cautious about policy tightening until it becomes confident about inflation staying above its 2% goal in a stable manner.
Source : Bloomberg
