Japan's service industry PPI rose 3.2% year-on-year in June as the war in Iran led to high freight rates
Data released by the Bank of Japan on Monday showed that the service producer price index (PPI) rose by 3.2% year-on-year in June, reflecting signs of expanding inflationary pressure, which will continue to make the market expect the central bank to further raise interest rates. The PPI in May was revised to a year-on-year increase of 3.4%. Data show that this increase was mainly driven by the continued rise in transportation costs, which increased by 5.3% year-on-year in June. Rising fuel prices and supply disruptions caused by conflicts in the Middle East have kept sea and air freight rates high.