Japan's September corporate services prices rise 3.7% yr/yr

TOKYO, Oct 27 - Japan's service-sector inflation rose 3.7% year-on-year in September, indicating growing price pressures, according to data released by the Bank of Japan on Tuesday. The year-over-year increase in the services producer price index, which measures the prices companies charge each other for services, followed a revised 3.5% gain in August, reported the BOJ.

This data is closely monitored by the central bank as it provides insights into how companies are incorporating rising labor costs into service-related prices. The BOJ is expected to maintain interest rates at 1.25% during its two-day meeting that concludes on Friday, but it has signaled its readiness to continue raising borrowing costs amid mounting price pressures.