Japan consumer prices fall for 15th month in May

Japanese consumer prices fell for the 15th straight month in May as deflation kept its grip on the world's second biggest economy.

The core consumer price index, which excludes fresh food, fell 1.2 percent from a year earlier, the government said Friday.

The result beat Kyodo news agency's average market forecast for a 1.3 percent decline. It also represents an improvement from April's 1.5 percent fall, suggesting price declines may be moderating as Japan's economy benefits from a jump in exports.

The government's new high school tuition breaks weighed heavily on prices, dragging education costs down 13 percent during the month. Falling prices for furniture, household goods and clothes also dragged the index south.

Lower prices may boost individual purchasing power, but deflation is generally bad for an economy. It plagued Japan during its "Lost Decade" in the 1990s, hampering growth by depressing company profits, sparking wage cuts and causing consumers to postpone purchases. It also can increase debt burdens.

Core CPI for Tokyo fell 1.3 percent in June. The reading is considered a barometer of price trends nationwide, according to the Ministry of Internal Affairs and Communications

๑۩۞۩๑๑۩۞۩๑๑۩۞۩๑๑۩۞۩๑๑۩۞۩๑

Sphere: Related Content