Japan’s services PPI fell -0.5% MoM but the annual rate still accelerated 0.1 ppts to 3.1% YoY.

• The annual rate of services PPI has been above 3% in seven of the last eight months.
• There was a divergence between service with high labor costs and low labor costs in January with the former down only -0.1% MoM and the latter down -1.1% MoM.
• Transportation services prices fell -0.7% MoM with road freight services down -0.4% MoM.
• Air transport services fell -2.0% MoM and air passenger services crashed -10.7% MoM after a 7.1% MoM increase previously.
• Finance & insurance (-0.6% MoM) and real estate (-0.8% MoM) services both made negative contributions.
• Other services (-0.2% MoM) were also down, led by a -7.0% MoM decline in hotel prices.