Japan's core consumer prices fell for the first time in four months in the year to October after a cigarette tax hike a year ago dropped out from calculations revealing persistent deflation caused by chronically weak domestic demand.
In fact, November data for the Tokyo area showed deeper declines that exceeded analysts' forecasts and backed the view that the Bank of Japan will maintain ultra-easy monetary policy for the foreseeable future.
A narrower measure of prices that excludes both food and energy fell from a year ago in a sign that the world's third-largest economy continued to struggle with lackluster job market, weak consumer demand and excess capacity. (Reuters)
↧