Japan’s core consumer prices fell for the third consecutive month in the year to December due to weak demand, showing mild deflation is likely to persist this year as energy prices stabilize and worries about Europe’s debt crisis suppress wage growth.
Core consumer prices declined an annual 0.1 percent, matching the median estimate and highlighting that the economy lost momentum at the end of last year.
A narrower measure of prices that excludes both food and energy also fell from a year ago in a sign that Japan continues to grapple with a strong yen, which pushes down import prices and makes exporters reluctant to raise salaries for their workers.
(Source: CNBC)