BoJ index shows more Japan firms passing on wage costs in services prices

The data highlights how prospects of steady wage increases are prompting more companies to charge more for their services, a trend the Bank of Japan (BoJ) sees as a prerequisite to raise interest rates from current near-zero levels.

The index, which measures business-to-business prices for services with a high labor-cost ratio, hit 106.4 in April, the highest level since comparable data became available in 1985.