Japan services producer inflation holds firm in March

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Producer price growth held steady in Japan’s services sector last month with improvements from engineering and architectural as well as leasing and rental services bolstering the headline figure.

The headline services producer price index published by the Bank of Japan clocked in a 0.8 per cent rise in March, the same as in February and besting a median forecast from economists surveyed by Bloomberg predicting a dip to 0.7 per cent.

Price growth excluding international transportation – which is heavily influence by oil prices – came in at the same rate, with the quickest annualised growth of 6.5 per cent coming from civil engineering and architectural services.

Contraction in leasing services eased 0.7 percentage points for a drop of 1.2 per cent, while price growth in rental services accelerated by nearly as much to 0.7 per cent year on year.

In monthly terms prices rose 0.6 per cent from February, double the previous month’s pace and marking a second straight month of inflation.

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