TOKYO — Japan's corporate bankruptcies for the first half of this year hit the highest level in a decade, data from a research firm showed on Friday, as high prices, labor shortages and reduction of Covid-era relief complicated firms' management.

There were 4,887 bankruptcies between January and June, up 22 percent from the same period a year ago, according to corporate credit research firm Teikoku Databank.

The debt of bankruptcies between January and June totaled roughly 681.02 billion yen ($4.24 billion), down 25 percent from a year ago, largely of small and midsized firms, the research firm said in a report.

"With the rapid depreciation of the yen and lackluster consumer spending, the business environment surrounding small and midsized enterprises remained severe in the second half of the year," it said.

The number of bankruptcies could surpass 10,000 by the end of the year, it added.

The service industry saw the number of entities going out of business exceeding 1,200 for the first time in 15 years, according to the report. In the retail sector, the number of restaurants going under hit the highest level since 2000.

The Bank of Japan in March ended eight years of negative interest rates and its bond yield control in a historical shift away from its prolonged radical stimulus program.

The Japanese central bank debated the chance of a near-time interest rate hike at the June policy meeting, raising speculation that heightening inflationary pressure could prod it to debate raising the rates at this month's meeting.