Japan service prices jump 3.7% August, linked to labor costs

Business Sep 28, 2026

Japan's service prices just hit a 3.7% jump in August, the biggest spike since June 2024.

This steady rise, closely linked to labor costs, is putting extra pressure on the economy and catching the Bank of Japan (BOJ)'s attention.

BOJ raises main rate to 1.25%

To keep things in check, the BOJ recently raised its main interest rate to 1.25%, its highest level in 31 years.

Governor Kazuo Ueda says he's ready to bump rates up again if needed, especially since homegrown factors like pay raises are driving prices up.