Possible setback to economic recovery
31/08/2007
In spite of a rise in footwear costs, a number of economic reports issued today suggest that the Japanese economy has not yet come out of deflation.
According to the ministry of internal affairs, Japan’s core annual consumer price index (CPI) fell 0.1% in July, from the previous year, marking the fifth straight monthly fall. The result was in line with market expectations.
The previous month witnessed a decline of the same magnitude. The nationwide headline annual CPI remained unchanged in July, although the index eased 0.1% over the previous month.
Industrial production fell 0.4% in July from the previous month, marking the first fall in two months, the ministry of economy, trade and industry said. In June, industrial production rose 1.2%, reversing the slide in the previous three months.
