Aug corporate service inflation hits 2.7 yryr BOJ
Increase driven by price hikes in wagesensitive sectors
BOJ chief Ueda says focusing on October service price data

TOKYO, Sept 25 Reuters A leading indicator of Japan39;s servicesector inflation held steady at 2.7 in August, data showed on Wednesday, underscoring the central bank39;s view that rising wages are prodding more firms to pass on higher labour costs through price hikes.

Servicesector inflation is being closely watched by the Bank of Japan for clues on whether demanddriven price gains are broadening enough to justify raising interest rates further.

The August yearonyear gain in the services producer price index, which measures the price companies charge each other for services, matched a revised 2.7 gain in July, BOJ data showed.

The increase was driven by price hikes in sectors sensitive to rising wages such as temporary work agencies and car repair services, the data showed.

BOJ Governor Kazuo Ueda has said he will pay strong attention to service inflation data for October, when Japanese companies typically make biannual revisions to prices for goods and services.

While there are some elements we can estimate in advance, we need to look at actual data to confirm whether wagedriven rises in service prices would broaden in October, he told a news conference on Wednesday.

The BOJ39;s services producer price index for October is due out on Nov. 26, while consumer inflation data for the month is set for…