In July, the price level of services provided to businesses increased by 1.1% due to the rise in TV advertisements and air freight transportation, which had fallen due to the spread of infection last year, and was the fifth consecutive month before. It exceeded the same month of the year.
Last month's preliminary figures for corporate service prices released by the Bank of Japan were 105.1, an index with an average of 100 in 2015, 1.1% higher than the same month of the previous year, rising for the fifth straight month.
By field,
▽ "TV advertising" increased by 18.1% and
▽ "domestic air freight transportation" increased by 14.8%.
It is believed that this was due
to the reaction to the sharp drop in prices
last year due to the spread of infection, which caused
companies to refrain from advertising in order to keep costs down, and to
suspend or reduce flights.
In addition,
▽ "accommodation" is also, in effect to the increased demand by Olympic officials, were up 10.8%.
The Bank of Japan said, "While there are concerns about the spread of infection, the acceleration of vaccination is expected to improve demand, and we would like to carefully look at how it will affect service prices in the future."