Core consumer prices index in Japan registered its seventh consecutive drop and remained unchanged on a year-to-year basis according to the latest data released by the Ministry of Internal Affairs last Friday.
Japan’s core inflation was in line analysts’ expectations and was steady at 0.5 per cent last month, which added more pressure to the central bank to regain momentum.
Nationwide overall consumer prices, excluding volatile fresh food costs, slipped 0.5 per cent on year ago, a major blow to Prime Minister Shinzo Abe and the Bank of Japan’s attempt to kick start the world’s third largest economy.
Michinori Naruse, an analyst from the Japan Research Institute, highlighted that the country’s major battle against deflation was driven by the slumping oil prices and the appreciation of Japanese yen.
Energy prices slid 8.4 per cent year on year on the previous month, impressively lower than the 10.2 per cent last August.
The yen lost ground on Friday trading after the news as it closed below 105 level against the US dollar while Japan’s major index, Nikkei 225, added 109.99 points, or 0.63 per cent at 17 446.41.
Separately, household spending dipped 2.1 per cent on same month last year while the unemployment figures were still positive as it remained at multi-decade low of 3.0 per cent.
With worries concerning the output freeze, oil futures slid down on Friday session.
The Organization of the Petroleum Exporting Countries’ recent meeting has sparked doubts on possible production output cut to stabilize the two-year global glut.
Reports from Dow Jones claimed that Iraq and Iran’s dispute on data steered the meeting into a deadlock.
International benchmark Brent crude futures lost 69 cents, or 1.4 per cent, to close at $49.78 per barrel, finishing the week with a decline of 4 per cent.
Its US counterpart, the West Texas Intermediate, shed 91 cents, or 2.05 per cent, settling at $48.70 per barrel and closing the week with 4.2 per cent loss.Would you like to know more? Visit our Financial Articles page now -> Click Here