Japan's Services Producer Price Index (SPPI) increased 3% in November from a year earlier, data from the Bank of Japan showed on Wednesday.

Excluding international transportation, the index rose 3.1%.

The index reached 109.1, up 0.4% from October, driven by higher prices in real estate rentals, advertising, and hotels. Hotel prices surged 19.1% on strong domestic travel demand, while advertising grew 4.7%.

International freight transportation costs fell sharply, with ocean freight down 8.3% and air freight dropping 14.6%, weighing on the overall index.