Japan posts slow decline in July consumer price
Japan’s core consumer prices slowed for three consecutive months in July. The global commodity inflation is seen to mitigate some deflationary pressures caused by a decline in spending driven by the COVID-19 pandemic.
Japan’s core consumer price index (CPI) dropped 0.2% in July from a year earlier, marking a steady decline for 12 months.
The drop was attributed partly to a change in the base year that gives a heavier weighting to mobile charge fees, which jumped a record 39.6% in July.
However, the drop was lower than market forecasts of 0.4% last month and 0.5% in June due to increasing food and fuel costs and a 19.6% spike in gasoline bills.
Economists expect consumer inflation to remain significantly below levels monitored in the United States and Europe following Japan’s extended restrictions projected to hit the already sluggish household spending.