* September services producer price index up 0.9% y / y

* Sea freight charges mark the largest increase since 2008

* Rising oil prices push up transportation costs

* Hotel costs go down, ad price increase moderates (add briefing details, price information in Japan)

TOKYO, Oct.26 (Reuters) – The prices Japanese companies charge for services rose 0.9% in September from a year earlier to mark the seventh consecutive month of gains, a sign that inflationary pressure is s ‘relies primarily on global supply constraints.

There is, however, uncertainty as to whether businesses will pass the higher costs on to households, as demand has yet to show signs of recovery since emergency COVID-19 restrictions were lifted here on September 30. .

The increase in the services producer price index was just below a 1.0% gain in August, data from the Bank of Japan (BOJ) showed on Tuesday.

The main driver of September’s rise was freight costs, suggesting that increasing global demand and supply bottlenecks are hurting corporate profits.

The cost of sea freight transport climbed 34.9% in September from the previous year, the largest increase since 2008.

Air freight charges also rose 28.5% in September, faster than a 19.6% gain in August.

“The impact of rising oil costs comes with a lag, so if oil prices continue to rise, we could see further increases in freight costs,” said Shigeru Shimizu, head of the BOJ price statistics division, during a briefing.

Hotel costs, on the other hand, fell 8.4% following lower demand after the end of the Tokyo Olympics. The increase in advertising royalties also slowed to 7.2% in September from 9.7% in August, a sign of sluggish domestic demand.

Japan has not been immune to global commodity inflation, with wholesale prices hitting a 13-year high of 6.3% in September, putting pressure on corporate profit margins and increasing the risk of unwanted consumer price increases.

But consumer inflation has remained around zero as companies remain reluctant to pass costs on to households, raising expectations, the BOJ’s 2% target will remain elusive. (Reporting by Leika Kihara; Editing by Himani Sarkar)

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