Japan Inflation Falls Putting Kuroda in a Tough Spot

Core consumer prices in the world’s third largest economy, Japan, fell on an annual basis for the first time in over two years in August.

The core consumer price index (CPI), which includes oil but not fresh food prices, declined 0.1% from a year ago – the first drop since April 2013.

The headline consumer price index rose 0.2% from a year ago, but remained flat from the previous month.
Deflation fears have plagued Japan, putting pressure on policymakers.

Prime Minister Shinzo Abe and Japan’s central bank have pledged to get the economy out of the deflation it has been battling for years.

Even though the fall in prices last month was expected, economists said the latest reading would result in the Bank of Japan stepping up its pace of easing in October.

Via BBC News

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza