Japan’s Corporate Service Price Index (CSPI) rose 2.6% year over year in January. The pace was unchanged from the prior reading.
The update was reported on 24 February 2026 at 23:52:45 GMT. The source was the FXStreet Team.
BoJ Policy Implications
The CSPI staying at 2.6% suggests Japan’s inflation pressures are not easing. This persistence is what the Bank of Japan (BoJ) has been watching closely, and it makes a policy shift more likely. In our view, it raises the odds of a rate hike in the near term.
Service inflation also matches the January national core CPI, which came in at 2.8% last week. In 2025, the Shunto wage talks delivered the biggest pay increases in three decades. The 2026 talks are expected to produce similar gains, which could keep service prices rising.
Markets are now focused on the BoJ meeting scheduled for March 18. Expectations for a move are rising, shown by the 10-year JGB yield testing 1.10%. That level is an important resistance point since yield curve control ended in late 2025.
For FX traders, this supports a stronger yen view, which could push USD/JPY lower. Demand is rising for USD/JPY downside protection and for JPY call options. One-month implied volatility has already increased to 9.5% this week, suggesting traders are preparing for a bigger move.
Rates Market Positioning
In rates, the outlook favors paying fixed on short-term yen interest rate swaps to hedge against, or benefit from, higher overnight rates. Another possible approach is positioning for lower Japanese government bond prices through futures. These trades reflect the growing belief that the BoJ may finally end its negative rate policy.
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