October 28: Prices for services traded between businesses in Japan increased 3.7% in September from a year earlier, according to preliminary Bank of Japan data released on October 27. The annual increase was above the revised 3.5% recorded for August.
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Key highlights
- The all-items services producer price index stood at 115.5, with 2020 equal to 100.
- Prices rose 0.3% from August.
- Excluding international transportation, the annual increase was 2.9%.
- This is a business-services measure, not household consumer inflation.
The September figures
The BOJ release provides both annual and monthly comparisons. The annual figure compares September with September last year; the monthly figure compares September with August. Neither should be substituted for the other when describing the pace of price change.
| Measure | September | August |
|---|---|---|
| All-items index | 115.5 | 115.2 |
| Annual change | 3.7% | 3.5% |
| Monthly change | 0.3% | 0.1% |
| Annual change excluding international transportation | 2.9% | 2.9% |
September figures are preliminary and August figures are revised. The transportation-excluded series remained below the headline annual rate, which is one reason readers should examine more than a single aggregate number.
What this index measures
The BOJ’s methodology describes the services producer price index as a measure of price movements in services supplied between businesses. Its scope differs from a consumer price index, which is concerned with purchases by households. An increase here does not mean every family’s spending rose by the same percentage.
An index level is also distinct from an inflation rate. With a base of 2020 equal to 100, the level gives a reference point for comparing the selected basket over time. The published percentage changes answer the narrower question of how that basket moved over a particular interval.
How to read the policy significance
Business service costs can be relevant to the wider inflation discussion, but this release alone cannot establish how much of a price change came from wages, energy, exchange rates or profit margins. Nor does a higher reading by itself announce an interest-rate decision.
The practical approach is to compare subsequent revisions and the detailed categories with other indicators. That avoids treating one monthly observation as a complete account of Japan’s economy.
What to watch
Further BOJ releases will show whether the September increase persists and whether preliminary estimates change. Any monetary-policy decision should be reported from the bank’s separate policy announcement.
Sources
- Bank of Japan: Services Producer Price Index, September 2026
- Bank of Japan: Explanation of the 2020-base Services Producer Price Index
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