Japan services producer prices hit 21-year high

TOKYO (Jiji Press) — Services producer prices in Japan rose 1.3% from a year before to a 21-year high in March as freight costs soared due to Russia’s invasion of Ukraine, the Bank of Japan said Monday.

The services producer price index, which measures costs for services provided to corporate customers, stood at 106.7 against the 2015 base of 100, rising for the 13th straight month and hitting a level unseen since April 2001, when the index was at 107.1.

Ocean freight transportation fees surged 43.9% after European countries rushed to source coal and grains from Latin America and elsewhere, instead of Russia.

International air freight transportation fees jumped 40.7% to their highest level since statistics began in 1985. The Ukraine war reduced air cargo capacity and lifted fuel costs for detour routes.