Keeping on course with the previous 10 months, Japan's services producer price index (PPI) for March rose 3.1% on year, reported the Bank of Japan on Thursday.

The rate of inflation in the services PPI has posted near 3% since June of last year.

The Japan services PPI measures price changes of services provided to corporate buyers in Japan, largely in business-to-business transactions.

The services PPI is distinct from measures of inflation, or the cost of services, to consumers.

The services PPI is considered one leading indicator of later changes in the consumer prices, as business try to recoup costs, or pass on savings to shoppers.

Within the services PPI in March, hotel charges rose 11% on year. Japan's travel sector has been recovering from the COVID-19 era, while the nation has also received a rising tide of international travelers.

Civil engineering and architectural services charges rose 5.2% on year in March, reported the Bank of Japan.

In contrast, ocean freight services fell 6% on year in March, while radio and television advertising rates rose only 0.2% on year, in the 12-month period.

Separately, the consumer price index-core (CPI-core, that excludes fresh foods) for Tokyo rose 3.4% on year in March, accelerating from a 2.4% on year gain in February, the Statistics Bureau of Japan reported.

The recent movements in price gauges present a challenge for the Bank of Japan, which has a 2% annual inflation target on the national CPI-core.

The nation's central bank is slated to hold a monetary policy-making session at the end of April.