Economic Buzz: Japan service sector inflation hits 3.1% in April

A leading indicator of Japan's service-sector inflation hit 3.1 per cent in April, Bank of Japan data showed on Tuesday, keeping alive expectations of further interest rate hikes by the central bank.

Service-sector inflation is being closely watched by the Bank of Japan for clues on whether prospects of sustained wage gains will prod firms to continue raising prices, and keep inflation sustainably around its 2 per cent target.

The April year-on-year gain in the services producer price index, which measures the price companies charge each other for services, followed a revised 3.3 per cent increase in March, BOJ data showed.

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