News
The Services Producer Price Index (SSPI) rose 1.9% from a year earlier to 107.1 points in August, which has remained on an upward trend for the 18th month in a row, the Bank of Japan announced earlier this week. As international shipping fees remain high due to rises in fuel prices, Russia's invasion of Ukraine and other factors, the growth was smaller month on month for the first time in a while but still hovered at a 21-year-high level.
Improving 4.1%, transportation and postal activities made the greatest contribution. More specifically, ocean freight transportation (except ocean tankers) surged 39.4%, and international air freight transportation, a more notable 70.6%. International air passenger transportation jumped 31.7%. The coronavirus pandemic is subsiding in the U.S. and Europe, making consumption increase more in services than in goods.
The SSPI (2015 average=100 points) is an indicator for changes in the prices of services traded among corporations. Reflecting service demand and supply trends, it is used when analyzing macroeconomics. When the index picks up, business conditions are estimated to improve, inducing Japanese yen buying.
