Japan’s consumer prices decline further as virus-led deflation lurks
Japan’s core consumer prices had seen two consecutive months of decline ended September. The plunge underscored a coronavirus-led contraction in demand, fuelling deflationary pressure in the world’s third-biggest economy.
The country’s core consumer price index (CPI) recorded a 0.3% drop in September from a year ago, government data showed on Friday. However, the figure came milder than the 0.4% decline predicted by markets.
According to analysts, the reading is expected to prompt the Bank of Japan (BOJ) to maintain its large stimulus program in a bid to minimize the economic impact of the coronavirus crisis. However, a travel-related government campaign had dragged the index as the scheme failed to support the economy and push the inflation away from the central bank’s 2% target.