Data released Wednesday showed a key gauge of services inflation in Japan rose
3.6% YoY in July, up from a revised 3.4% in June. The corporate services price
index, which tracks inter-firm services prices, reinforces the Bank of Japan's
view that a tight labor market is allowing firms to pass higher costs on to
consumers and signals broader inflationary pressure, bolstering the near-term
case for rate hikes.
