Deflation grips Japan as Core CPI turns negative in August

FXStreet (Mumbai) - After a flat reading booked in July, consumer prices continued to cool-off in Japan and turned into the negative zone for the first time in over two years.

The National Core CPI y/y (excluding fresh food) fell -0.1% in August, although the print matched market forecasts.

While the Tokyo Core CPI y/y fell -0.2% in September, against -0.1% previous. Markets had predicted the same numbers for September.

Worsening deflation fears in Japan, underscores the challenges faced by Bank of Japan (BOJ) Governor Haruhiko Kuroda and raises questions over the success of the monetary stimulus unveiled by the central bank, thus supporting the case for further monetary easing.

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