Japan’s Services Producer Price Index (SPPI) rose 2.7% YoY in August 2025 (Jul: +2.6%), while the SPPI excluding international transportation increased 2.8% YoY (Jul: +2.8%), reflecting stable but moderate service price growth.

• On a MoM basis, the headline SPPI edged up 0.2%, the same pace as the ex-international transportation measure.

• Hotels rose 7.6% YoY (Jul: +5.4%), making a notable positive contribution to service inflation.

• Civil engineering and architectural services accelerated to 4.3% YoY (Jul: +3.6%), while machinery repair and maintenance rose 2.3% YoY (Jul: +1.9%).

• Ocean freight transportation fell -1.1% YoY (Jul: -9.0%), continuing to weigh on the transportation category.

• Domestic air passenger transportation slowed to 2.4% YoY (Jul: +5.7%), while road freight gained 2.9% YoY (Jul: +3.2%).

• Television and radio advertising surged 9.8% YoY (Jul: +5.3%), offsetting declines in internet and magazine advertising (-2.1% YoY).

• Services with high labor cost ratios rose 3.3% YoY, while those with low labor cost ratios increased 2.1% YoY, showing stronger price momentum in labor-intensive sectors.