Japan – May services PPI
As with other inflation indicators, May service PPI shows price pressures running at multiyear highs. But the pick-up of the last couple of months is narrow, concentrated in international transport costs, which in turn related to the rise in energy prices.
Headline services PPI inflation rose again in May to 1.8% YoY from 1.7% in April, another new high since at least the 1990s. The acceleration reflected the rise in international transport costs: higher prices for ocean and air freight inflation accounted for about 50% of the total services inflation in May.
Excluding that and "core" services PPI was unchanged in the month at 1.2% YoY. Inflation in financial services and advertising softened in May, while IT prices continued to fall month-on-month.
