Japan’s service prices reach historic highs on easing COVID-19 drag
Japan’s corporate services prices accelerated the highest in eight months ended May, data showed on Thursday. The expansion contributed to other economic indicators, which suggest that the world’s third largest economy is slowly recovering from the coronavirus slump.
The services producer price index recorded an annualized jump of 1.5% in May, securing its third monthly rise and the sharpest pace of jump it hit since September 2020. The reading from the Bank of Japan also revealed widening inflationary pressures as components of the index reached 76; larger than the 15 reading seen the previous month.
The Japanese economy posted a 3.9% year-on-year jump in the first quarter, underscoring a turbulent rebound. However, analysts believe that easing consumption would drive the economy up even if it is just modest.