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No sign of end to Japanese deflation cycle

Japanese consumer prices fell 0.8% in September from a year earlier as Japan's prolonged deflationary cycle dragged on for a 25th straight month, the government said this morning.

The September decline followed a 0.7% fall in August. Core consumer prices, which exclude fluctuations in fresh food prices, fell 0.8% from September last year in the 24th consecutive monthly fall.

On a monthly basis, consumer prices fell 0.2% in September after rising 0.4% in August.

The Cabinet Office said there had been no fundamental change to the extended weak trend.