Japan’s consumer price drop accelerates in November

November had seen Japan’s core consumer prices drop at their fastest pace in a decade. The decline could be attributed to the coronavirus’s impact on demand as the country grapples with the threat of deflation and fears that former premier Shinzo Abe’s stimulus policies will be nullified.

Core consumer prices recorded a 0.9% drop in November from a year earlier, government data showed on Friday. The weak figure came parallel with forecasts, bringing in more pressure for the Bank of Japan to keep its massive stimulus program.

More so, the figure came as the fourth consecutive record of contraction and the most rapid pace of decline since September 2010. The drop could be attributed to the government’s recent tourism scheme and subdued energy prices, but what appeared to be the main issue is the country’s domestic demand and how it fared with prices.