Japan’s consumer prices drop on cellphone fee reduction
Japan’s core consumer prices declined further, tallying their ninth consecutive month of contraction in April. The drop could be attributed to fee reductions in cellphones that heavily offset surging energy prices. This, in turn, suggested that frail demand and upbeat costs will likely drag the country’s economic recovery.
The core consumer price index (CPI) recorded an annualized drop of 0.1% in April, government data showed on Friday. The weak reading placed lower than the 0.2% forecast, meeting its previous low record seen in March.
The data also revealed that firms were suffering from an increase in input costs, emphasizing risks that might restrict the manufacturing-heavy country from recovering. More so, the figures remained indicative of the challenges that policymakers face in resolving the coronavirus pandemic.