TOKYO (Reuters) – Japan's jobless rate was unchanged at 2.5 per cent in November from the previous month, government data showed on Tuesday.

The seasonally adjusted unemployment rate matched economists' median forecast of 2.5pc in a Reuters poll.

The jobs-to-applicants ratio dipped to 1.28 in November, slightly lower than in October and the median forecast of 1.30, separate labour ministry data showed.

CORPORATE SERVICE INFLATION

Japan's business-to-business service inflation was steady at 2.3pc in November, data showed on Tuesday, suggesting companies were gradually passing on rising labour costs amid prospects for sustained wage gains.

The data underscores the Bank of Japan's (BOJ) view that rising service prices will start to replace cost-push inflation as a key driver of price gains, and help achieve its 2pc inflation target on a sustainable basis.

The year-on-year rise in the services producer price index, which measures what companies charge each other for services, was unchanged from October and higher than a 2.0pc gain in September, BOJ data showed.

BOJ Governor Kazuo Ueda said on Monday the likelihood of achieving the central bank's 2pc inflation target was "gradually rising", and that next year's wage outlook was key to the timing of an exit from ultra-loose monetary policy.

He has repeatedly stressed the need for wages to keep rising, heightening market attention to developments in service prices, which reflect the wage pressures companies face.