TOKYO — A leading indicator of Japan's service-sector inflation held steady at 2.7 percent in August, data showed on Wednesday, underscoring the central bank's view that rising wages are prodding more firms to pass on higher labor costs through price hikes.

Service-sector inflation is being closely watched by the Bank of Japan (BoJ) for clues on whether demand-driven price gains are broadening enough to justify raising interest rates further.

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