{"id":440879,"date":"2026-10-27T07:40:14","date_gmt":"2026-10-27T00:40:14","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/japan-september-services-ppi-holds-at-3-7-y-y-in-line-with-forecast-before-boj-440879\/"},"modified":"2026-10-27T07:40:14","modified_gmt":"2026-10-27T00:40:14","slug":"japan-september-services-ppi-holds-at-3-7-y-y-in-line-with-forecast-before-boj","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/japan-september-services-ppi-holds-at-3-7-y-y-in-line-with-forecast-before-boj-440879\/","title":{"rendered":"Japan September services PPI holds at 3.7% y\/y, in line with forecast, before BoJ"},"content":{"rendered":"<div>\n<p>An in-line print is unlikely to move the yen much on its own, but it removes one possible dovish surprise before Friday\u2019s decision and keeps the backdrop supportive of December hike pricing. Steady services inflation strengthens the case for the Outlook Report to effectively declare underlying inflation has reached 2%, which would support the yen and short-end JGB yields. The bigger moves are still likely to come from the BoJ\u2019s vote split, Ueda\u2019s press conference and Wednesday\u2019s Fed decision. Oil-driven cost pressure tied to the Iran conflict keeps the wider inflation backdrop firm.<\/p>\n<p>&#8212;<\/p>\n<p>Earlier:<\/p>\n<ul>\n<li><a href=\"https:\/\/investinglive.com\/central-banks\/boj-preview-mufg-sees-hold-but-a-2-inflation-call-with-two-dissenters-the-key-yen-risk\" target=\"_blank\" rel=\"follow\">BoJ preview: MUFG sees hold but a 2% inflation call, with two dissenters the key yen risk<\/a><\/li>\n<li><a href=\"https:\/\/investinglive.com\/news\/japan-services-ppi-preview-3-7-pace-in-focus-ahead-of-friday-s-boj-decision\" target=\"_blank\" rel=\"follow\">Japan services PPI preview: 3.7% pace in focus ahead of Friday\u2019s BoJ decision<\/a><\/li>\n<\/ul>\n<p>&#8212;<\/p>\n<p dir=\"ltr\">Japan\u2019s firms are still passing on service costs at a two-year-high pace, handing the BoJ one more piece of evidence for the 2% declaration markets expect this week.<\/p>\n<p dir=\"ltr\">Summary:<\/p>\n<ul dir=\"ltr\">\n<li>Japan\u2019s services producer price index rose 3.7% y\/y in September (expected 3.7%, prior 3.7%)<\/li>\n<li>That holds the annual pace at its highest in more than two years<\/li>\n<li>The index tracks prices companies charge each other for services and is watched for wage pass-through<\/li>\n<li>Goods producer price inflation slowed to 6.8% in September from 7.6%<\/li>\n<li>The BoJ meets October 29-30 and is expected to hold at 1.25%, with a December hike the consensus call<\/li>\n<li>Focus is on whether the Outlook Report effectively declares underlying inflation has reached 2%<\/li>\n<\/ul>\n<p dir=\"ltr\">\nJapan\u2019s services producer price index rose 3.7% year on year in September, in line with expectations and matching August\u2019s pace, Bank of Japan data showed on Tuesday. That keeps the annual rate at its highest in more than two years, just days before a BoJ policy meeting where the bank\u2019s assessment of inflation is expected to matter more than the rate decision itself.<\/p>\n<p dir=\"ltr\">The index, also known as the corporate services price index, tracks what companies charge each other for services such as transport, communications, finance, real estate, advertising and equipment leasing. Because these services are labour-intensive, the data are watched as a gauge of whether rising wages are being passed through into prices, a key part of the BoJ\u2019s case that inflation in Japan is becoming self-sustaining.<\/p>\n<p dir=\"ltr\">The steady reading contrasts with the goods side, where producer price inflation slowed to 6.8% in September from 7.6% in August as government fuel subsidies helped ease some raw-material cost pressure. Holding firm against that backdrop suggests domestic service-sector price pressure is proving more durable than the imported cost pressure that drove much of Japan\u2019s earlier inflation.<\/p>\n<p dir=\"ltr\">The release comes ahead of the BoJ\u2019s October 29-30 meeting, where the bank is widely expected to hold its policy rate at 1.25% after raising it in September. Most economists expect the next hike in December. The bigger focus this week is whether the BoJ\u2019s updated Outlook Report effectively declares that underlying inflation has reached its 2% target, a step it has never taken since adopting the goal in 2013. Governor Kazuo Ueda said after last week\u2019s G20 meeting that underlying inflation was broadly close to 2% and that the bank could not tolerate a further rise.<\/p>\n<p dir=\"ltr\">Markets will also watch the vote. The two board members who opposed September\u2019s hike could dissent again in favour of a rate cut, a move that would soften the bank\u2019s hawkish message and likely weigh on the yen. Today\u2019s data does little to strengthen their case.<\/p>\n<\/p>\n<p>Bank of Japan Governor Ueda\u00a0<\/p>\n<p>                            This article was written by Eamonn Sheridan at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>An in-line print is unlikely to move the yen much on its own, but it removes one possible dovish surprise before Friday\u2019s decision and keeps the backdrop supportive of December hike pricing.&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-440879","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=440879"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440879\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=440879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=440879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=440879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}