Japan’s Services Producer Price Index (SPPI) rose 0.5% MoM and 3.1% YoY in April 2025, slowing slightly from 3.3% YoY in March.

• Excluding international transportation, the SPPI rose 0.6% MoM and 3.3% YoY.
• Hotel prices surged 8.5% MoM and 17.2% YoY, contributing strongly to the monthly increase.
• Advertising services fell sharply by -7.3% MoM, led by a -7.7% drop in internet, newspaper, and magazine ads.
• International transportation prices declined -4.5% MoM and -10.3% YoY, with air freight down -9.3% MoM and ocean freight down -5.5% MoM.
• Core service sectors with high labor cost ratios rose 1.3% MoM and 3.5% YoY, showing underlying service sector inflation remains firm.