Japan’s Services Producer Price Index (SPPI) fell -0.1% MoM to 110.7 in June 2025 but rose 3.2% YoY, down slightly from the 3.4% YoY increase in May.

• Excluding international transportation, the index declined -0.2% MoM to 110.4, and YoY growth eased to 3.3% (May: +3.6% YoY).
• Services producers with a high labor cost ratio saw costs up 0.1% MoM in June while producers with a low labor cost ratio saw costs fall -0.3% MoM.
• Major downward contributions to YoY growth came from hotel services (-0.15 pts) and building maintenance (-0.06 pts).
• Sectors contributing most to YoY growth were “Other services” (+1.53 pts), “Information and communications” (+0.60 pts), and “Transportation and postal activities” (+0.49 pts).
• On a service subgroup basis, architectural and technical services, software development, and logistics remained strong contributors to service inflation.