Core consumer prices in Japan fell 0.2% in July from a year earlier, official figures show today, indicating that Japan remains caught in mild deflation.
The decline in the consumer price index (CPI), which followed a 0.2% drop in the previous month, matched market expectations.
The index is closely watched by the Bank of Japan, which is battling persistent deflation. The central bank has vowed to maintain its stimulus monetary policy by flooding the financial market with cash until core consumer prices rise year-on-year for an extended period.
Month-on-month, the core CPI, which excludes volatile fresh food costs but includes energy prices, edged down 0.1%, the Ministry of Internal Affairs and Communications said.
Meanwhile, core consumer prices in Tokyo, a leading index of nationwide trends, rose 0.3% month-on-month in August but fell 0.3% from a year earlier, the 71st consecutive month it has dropped.
