Japan’s consumer price drop eases on upbeat fuel prices

Japan’s annual consumer price drop eased for two consecutive months ended February. This followed after an increase in fuel prices minimized some contraction pressures brought about by the coronavirus-driven decline in household spending.

The country’s core consumer prices recorded an annualized 0.4% contraction in February, government data showed on Thursday. The figure came parallel with what was predicted by markets as it placed larger than the 0.6% decline seen in January.

The world’s third-largest economy was also monitored recovering for two consecutive quarters. The recovery followed after the economy suffered from its sharpest postwar slump due to the government’s implementation of coronavirus restrictions. It is, however, expected to contract again as renewed emergency measures disrupted consumption.