Corporate service price minus 6 years and 10 months negative new corona effect April 24 13:10
The price of services provided to companies last month fell for the first time in 6 years and 10 months, excluding the effect of the consumption tax rate hike, as prices of accommodations and others fell due to the spread of the new coronavirus. .
The BOJ surveys the prices of services provided to companies every month in order to understand trends in the economy and prices.
As a result, excluding the impact of the consumption tax hike, the service price for enterprises in the last month was 103, an index with the average of 2015 as 100, 0.2% lower than the same month of last year.
Service prices have continued to rise against the backdrop of soaring personnel costs, etc., and they have turned negative for the first time in 6 years and 10 months since May 2013.
The main reason for this was the limited movement within and outside of Japan due to the spread of the new coronavirus infection.In the breakdown, the index of accommodation services such as hotels and inns was minus 24.3% compared to the same month last year, and international passenger transportation was Negative was 14.5%, which was the largest decline ever.
In addition, TV advertisements fell sharply to -10.6% as companies strengthened their tendency to refrain from advertising.
The Bank of Japan said, “The voluntary refraining from going out is further intensified by the declaration of an emergency. This month and April, it is also time for companies to revise service prices, and I would like to pay attention to the impact of the new coronavirus.” I will.