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Japan's Service Inflation Hits 3% Amid Labor Shortages

10/28/2025

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Summary

Story summary

Japan's service-sector inflation rose for the second straight month, with a 3.0% year-on-year rise in September 2025.
Price gains occurred in labor-intensive sectors such as hotels and construction, driven by labor shortages.
The Bank of Japan is expected to keep the policy rate at 0.5% at its upcoming meeting.
This stance follows a decade-long stimulus and a rate hike earlier this year.

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Story summary

Japan's service-sector inflation rose for the second straight month, with a 3.0% year-on-year rise in September 2025.
Price gains occurred in labor-intensive sectors such as hotels and construction, driven by labor shortages.
The Bank of Japan is expected to keep the policy rate at 0.5% at its upcoming meeting.
This stance follows a decade-long stimulus and a rate hike earlier this year.