Reversing recent weakness, Japan's services producer price index edged higher in February, pushed by increased office rentals, software development and freight charges.
The nation's producer price index (PPI) rose 2.7% on year in February, up from a 2.6% on-year gain in January, reported the Bank of Japan on Thursday.
On month, the services PPI rose 0.2% from January, after January's services PPI had declined 0.5% from December 2025, added the central bank.
Japan's services PPI measures prices charged for services traded between enterprises, in business-to-business transactions. Such items or sectors as office rents, or transportation, advertising, and finance charges are gauged.
The services PPI is distinct from the consumer price index (CPI), which measures prices in retail locations faced by shoppers.
However, the services PPI is considered one of the leading indicators of future pressures on the CPI, as businesses attempt to pass on costs to consumers.
Among business costs rising in February were trucking bills, up 2.9% on year, ocean freight charges, up 9.7%, software development bills, up 4.3%, and office rentals, also up 4.3% in the 12 months to February, reported the Bank of Japan.
The Bank of Japan has a 2% inflation target on the nation's CPI-core, which strips out fresh food bills.
While recent CPI releases have pointed to easing inflation, the services PPI is indicating stubborn services-related inflation holding modestly above the central bank's targeted inflation rate.
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