Japan’s Services Producer Price Index (SPPI) rose 2.9% YoY in July 2025 (Jun: +3.2%), with PPI excluding international transportation increasing 3.0% YoY (Jun: 3.3% YoY).

• The PPI for services with a high labor cost ratio was up 3.7% YoY, unchanged from the previous reading, while the PPI for services with a low labor cost ratio eased to growth of just 1.9% YoY, down from 2.7% YoY.

• “Other services” contributed the largest drag, down -0.24 ppts, as hotel prices (+5.4% YoY) and machinery repair (+6.1% YoY) slowed compared with June.

• Real estate services subtracted -0.03 ppts, with hotel rentals easing to +1.8% YoY (Jun: +2.5%).

• Leasing and rental also weighed (-0.03 ppts), with construction and office equipment rentals softening.

• Advertising services fell -0.03 ppts, led by internet and magazine advertising (-1.0% YoY), partly offset by gains in television and radio ads (+5.1% YoY).

• Transportation and postal activities added +0.02 ppts, supported by road transport facility services (+2.2% YoY) despite ongoing declines in ocean freight (-9.0% YoY).