Japan's service-sector prices jump 3.7% in September, signaling tighter inflation

The latest services producer price index showed a 3.7% increase in September compared with the same month last year, following an adjusted 3.5% rise in August. The gauge measures the prices firms charge each other for services and is closely monitored for signs of companies passing higher labour costs onto customers. The Bank of Japan sees the data as evidence of mounting inflationary pressure. The central bank is expected to keep its policy rate at 1.25% at the upcoming two-day meeting but may signal readiness for further hikes.