Japanese CPI fell Japan’s core consumer prices fell in the year to August, a sixth straight drop, keeping the Bank of Japan under pressure to ease monetary conditions further as it reboots policy in a bid to hit 2 percent inflation more quickly.
Household spending fell for a sixth straight month, highlighting the weakness in private consumption, which accounts for roughly 60 percent of the economy, while a rebound in factory output brightened the outlook somewhat.
The mixed data offered little respite for the central bank, which last week switched to targeting short- and long-term interest rates from of its previous strategy of increasing base money at an annual pace of 80 trillion yen ($789 billion).
espite three and a half years of heavy money printing by the BOJ, weak household spending and a strong yen pushing down import costs have kept inflation well away from the central bank’s 2 percent goal.
Household spending fell 4.6 percent in August from a year earlier, bigger than a 2.5 percent drop expected by economists. It was the biggest decline since March, separate data from the internal ministry showed.
Separate data from the trade ministry showed factory output rose 1.5 percent in August, much bigger than a 0.5 percent rise expected by economists, led by electronics industry.Click here for reuse options!