Japan’s August consumer prices see fastest decline

August had seen Japan’s core consumer prices dropping at the fastest pace in almost four years. The drop could be attributed to government-sponsored discounts for domestic travel in a bid to salvage the struggling tourism industry.

The core consumer price index (CPI) recorded a 0.4% contraction in August from a year ago, government data showed on Friday. The figure matched the median market forecast for a 0.4% drop as it also placed in line with a flat reading in July.

The drop was mainly from a plunge in accommodation and hotel prices as the government launched subsidy programs to aid the battered tourism sector. Prices of accommodation tallied a 32.0% drop in August.

Moreover, the weak CPI figure came after Bank of Japan Governor Haruhiko Kuroda said that the central bank would also monitor employment growth, indicating the possibility of stimulus once unemployment triggered deflation.