Japan Consumer Prices Fell 1.2% in March

Japan’s consumer prices fell for a 13th month in March, indicating the economy remains hampered by deflation even as the export-led recovery starts to spread.
TradingEconomics.com, Bloomberg 4/29/2010 11:33:57 PM

Prices excluding fresh food slid 1.2 percent from a year earlier, after dropping 1.2 percent in February, the statistics bureau said.

So-called core-core prices, which exclude energy and food and mirror the U.S.’s inflation index, fell 1.1 percent in March, the same pace as February.

In Tokyo, core prices slid 1.9 percent in April compared with 1.8 percent in March, today’s report showed. Figures for the capital are a harbinger of nationwide inflation trends because they are released a month earlier.

The government’s waiver of high school tuition fees from April 1 will drag down the core price index by about 0.5 percentage point, the central bank estimates. For the year ended March 31, the index fell 1.6 percent, the statistics bureau said.

Japan Consumer Prices Fell 1.2% in March