Services Producer Price Index rises 3.0 percent in April

The Services Producer Price Index (SPPI) for all items increased by 3.0 percent in April 2026 compared to the previous year, following a revised 3.3 percent rise in March.

This marks a slight deceleration in the overall annual growth rate.

The index, which measures the prices of services traded between businesses, stood at 114.3 (CY2020=100).

Excluding international transportation, the SPPI saw a 2.5 percent year-on-year increase, down from a revised 2.9 percent in March.

This component, which accounts for the majority of the index's weight, reflects a broad-based increase in service costs across various sectors within Japan.

The monthly change for the all-items index was 0.5 percent, indicating continued upward pressure on prices during the month.

The data suggests that while the pace of annual increase has moderated slightly from the previous month, services inflation remains robust.

Major groups showed varied contributions to the overall yearly change.

Transportation and postal activities recorded a 5.1 percent yearly increase, contributing 1.01 percentage points to the overall index.

Notably, ocean freight transportation saw a substantial 59.1 percent year-on-year rise.

Information and communications services increased by 2.7 percent, adding 0.83 percentage points, partly due to a 9.5 percent rise in access charges.

Real estate services rose 2.0 percent, contributing 0.58 percentage points.

Conversely, television and radio advertising experienced a yearly decline of 0.6 percent.

This mixed picture indicates diverse price dynamics across service segments.