Japan’s Services Producer Price Index rose 3.7% year-on-year in September 2026, accelerating from a downwardly revised 3.5% in the previous month and matching market expectations. It was the highest reading since June 2024, as persistent labor costs and elevated transport and fuel expenses amid geopolitical tensions continued to drive service-sector inflation. Price growth accelerated in finance and insurance (1.5% vs 1.4% in August), real estate (2.2% vs 2.1%), transport and postal activities (8.4% vs 6.8%), leasing and rental services (11.7% vs 11.0%), and other services (2.8% vs 2.5%). Meanwhile, prices in information and communications rose at an unchanged pace of 2.5%, while advertising prices fell more sharply (-5.2% vs -0.8%). On a monthly basis, the index increased 0.3%, following a downwardly revised 0.1% gain in August, marking its third consecutive monthly rise.