A leading indicator of service-sector inflation held near 3% in October, data showed Tuesday, offering further evidence that conditions for another near-term interest rate hike by the Bank of Japan were falling into place.
While uncertainty over U.S. president-elect Donald Trump’s policies clouds the outlook, many analysts expect Japan’s economy to sustain a moderate recovery and help keep inflation around the central bank’s 2% target.
The services producer price index, which measures the price companies charge each other for services, rose 2.9% in October from a year earlier, BOJ data showed, accelerating from a 2.8% gain in September.
