TOKYO, May 28 (Reuters) - Japanese corporate services prices in April rose at their fastest pace since early 2015, Bank of Japan data showed on Tuesday, boosted by labour costs in the services sector.

The Corporate Services Price Index (CSPI) rose 2.8% year-on-year in April, following a 2.4% increase in the previous month. For the month, the service prices rose 0.7% from March, slowing from the prior month's 0.9%.

The annual gains reflect rising labour costs in labour-intensive service businesses such as machine repair and industrial facility renovation.

The index is closely watched by policymakers as they look for solid wages to spark durable demand-led inflation, which is a prerequisite for further Bank of Japan rate hikes after its landmark decision in March to end negative rates.

The BOJ has signaled it will continue to raise interest rates albeit at a sedate pace given the fragile state of the Japanese economy. (Reporting by Tetsushi Kajimoto; Editing by Sonali Paul and Shri Navaratnam)