Overall consumer prices were flat on year following the 0.1 percent rise in November. On Month, CPI was unchanged at -0.3 percent.
Among the individual components, prices for education declined 13.0 percent on year, followed by furniture at -3.5 percent and recreation and clothing both down 0.8 percent.
January inflation for Tokyo - considered a leading indicator for the nationwide trend - was down 0.1 percent on year compared to forecasts for an unchanged reading of -0.2 percent.
Core CPI for Tokyo was down 0.2 percent on year versus forecasts for -0.3 percent following the November rate of -0.4 percent.
Among the individual components, prices for education declined 6.6 percent on year, while furniture prices fell 2.3 percent and housing prices were down 0.8 percent.
For all of 2010, overall consumer prices were down 0.7 percent on year. Core CPI fell 1.0 percent, declining for the second straight year.