Japan inflation in record drop

Japan’s consumer price index (CPI) dropped at a record rate in August, suggesting threats remain to the country’s economic recovery.

The CPI figure fell 2.4% from a year earlier—its steepest decline since the government started collecting data in 1971.

Although much of the fall can be attributed to the trickle down effect of lower commodity prices, the CPI has now fallen for six straight months.

The figures could raise concerns over Japan’s recovery story, with painful memories of deflation in the 1990s still fresh in peoples’ memory.


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