Japan's corporate services inflation accelerates in July

TOKYO, Aug 26 (Reuters) - ‌A ​key ​gauge of Japan's service-sector inflation rose 3.6% in July from ‌a year earlier, data showed on ⁠Wednesday, reinforcing the central bank's view that a ‌tight labour market ‌is pushing firms to pass rising costs on to consumers.

The increase in the ​services producer price index, which tracks the prices companies charge each ⁠other for services, followed a revised 3.4% gain in ​June, Bank of Japan data showed.

The data added to signs of ​broadening inflationary pressure in ‌the economy that have bolstered the case for a near-term ⁠interest rate hike.

Japan's core consumer inflation accelerated in July from a year earlier ⁠as firms passed on rising import costs from ​a weak yen and the U.S.-Israeli war with Iran.

Sources have told Reuters the BOJ is ‌set to raise the rate as soon as September and ‌is considering hiking more aggressively thereafter ⁠from the current ‌pace of ​roughly two times a year.

(Reporting by Leika Kihara; Editing by Jacqueline ‌Wong)

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