Business-service inflation reached 3.7%, while the transport-excluded rate held steady and labor-sensitive price growth eased before Friday’s BOJ decision.

Freight pushed Japan’s services producer inflation higher in September while price growth in labor-intensive services slowed, complicating the policy signal for Bitcoin investors watching Friday’s Bank of Japan decision. The potential crypto risk runs through yen borrowing costs and the currency’s response to the BOJ’s outlook.

The BOJ’s preliminary October 27 release put annual inflation in its Services Producer Price Index (SPPI) at 3.7%, up from August’s revised 3.5%. Ocean freight added 0.2 percentage points to the change in annual inflation, matching the overall net 0.2-point acceleration at published precision. That is its contribution to the acceleration, rather than its share of the inflation level.

Two narrower readings were steadier. Annual inflation excluding international transportation stayed at 2.9%, while price growth in services with a high labor-cost ratio eased to 2.6% from August’s revised 2.7%.

The SPPI measures services sold to businesses and governments, so its labor-cost grouping tracks selling prices rather than employee pay. It is also distinct from consumer inflation. The BOJ’s underlying-inflation framework considers how widely consumer prices are rising alongside labor tightness, the output gap, expectations and wage growth.

Separate wage evidence adds another dimension: final August labor-survey results, released October 23, show scheduled cash earnings rose 3.8% from a year earlier across all employment types at establishments with at least five employees.

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