Japan’s services inflation split complicates the BOJ outlook before Friday’s decision
Summary
Japan’s annual services producer inflation rose to 3.7% in September from a revised 3.5% in August, with ocean freight accounting for 0.2 percentage points of the acceleration. Inflation excluding international transport held at 2.9%, while labor-intensive services inflation eased to 2.6%. August scheduled cash earnings rose 3.8% year over year. The figures provide a mixed signal ahead of the Bank of Japan’s October 29–30 meeting, where policymakers are expected to set out their rate outlook. A tighter-than-expected path or yen appreciation could raise costs for yen-funded investors and prompt risk reduction that affects Bitcoin, though the data do not show a current crypto-market unwind.
