Japan’s business-to-business service inflation hits 2.5% in May

TOKYO : The price Japanese companies charge each other for services rose 2.5 per cent in May from a year earlier, data showed on Tuesday, a sign prospects of steady wage increases are prompting more companies to pass on higher labour costs.

The year-on-year increase, however, slowed from the previous month’s 2.7 per cent gain, Bank of Japan (BOJ) data showed.

An index measuring the price companies charge each other for services with high labour costs rose 2.5 per cent in May from a year earlier, unchanged from April, the data showed.