TOKYO, Nov 27 Reuters Japan39;s businesstobusiness service inflation accelerated in October as a tight job market lifted labour costs, underscoring a broadening of price pressures that could heighten the chance of a nearterm end to ultraloose monetary policy.

The services producer price index, which measures the price companies charge each other for services, rose 2.3 in October from a year earlier, up from a revised 2.0 gain in September, Bank of Japan BOJ data showed on Monday.

Information and communication, machinery repair and worker dispatching businesses saw fees increase from yearearlier levels due to higher labour costs.

A surge in inbound tourism drove up hotel fees 49.9.

The data suggest Japan39;s economy is making progress towards achieving sustained rises in inflation accompanied by solid wage growth.

BOJ Governor Kazuo Ueda has said inflation has been driven mostly by costpush factors and must shift to a more demanddriven rise in prices backed by higher wages for the bank to consider normalising its ultraloose monetary policy.

His remarks have heightened market attention to developments in services prices, which most vividly reflect wages pressures companies face in their businesses.

With inflation having held above the BOJ39;s 2 target for more than a year, companies have faced unprecedented pressure to compensate employees with pay hikes to retain and lure talent.

Indications from businesses, unions and economists suggest the labour and cost…