Service prices rise on freight, hotel demand

The prices businesses pay for services in Japan marked an increase in August for the sixth-straight month. The rise was due to a rebound in the cost of freight transportation and hotel services compared to last year, when the coronavirus pandemic had a major impact on the economy.

The Bank of Japan said on Monday that the Services Producer Price Index rose 1 percent last month from the same period in 2020.

The cost of ocean freight transportation rose 28.9 percent as demand returned for shipments of iron ore from Australia.

The cost of domestic air freight transportation jumped 32 percent. Television advertising was up 16.4 percent.

The cost of hotel services rose about 9 percent as rooms filled up during the Tokyo Olympics.

BOJ officials say they are keen to watch how much the lifting of the coronavirus state of emergency can revive activity in the hotel industry.