Japan’s Services Producer Price Index (SPPI) eased -0.1% MoM to 110.7 in May 2025 but rose 3.3% YoY, slightly down from April’s 3.4% YoY pace and the lowest so far in 2025.

• Excluding international transportation, the SPPI held steady MoM at 110.5 and rose 3.5% YoY, unchanged from April.
• Hotel prices jumped 8.6% MoM and 17.2% YoY, continuing strong gains.
• Ocean freight transportation prices were up 1.2% MoM but down -13.4% YoY, continuing the decline in the international transport category of -11.5% YoY.
• Advertising services dropped -2.5% MoM and were up just 0.9% YoY, with internet and print advertising declining sharply.
• Services with high labor cost ratios remained firm, up 3.7% YoY and flat MoM.