Global Biz

Japan consumer prices fall 0.6 percent in October

(Agencies)
Updated: 2010-11-26 09:26

TOKYO - Consumer prices in Japan fell 0.6 percent during the month of October, the government said Friday, marking the 20th straight month of declines as the country struggles to keep its economic recovery alive.

Japan's key consumer price index, which excludes volatile fresh food prices, was down from the same month a year ago.

Deflation raises individual purchasing power but is generally bad for the overall economy, as it cuts into company profits and can trigger job and wage cuts.

News of the continued price declines in Japan came Friday as the country's parliament held final debates over a new $61 billion stimulus package, which includes financial support for small businesses and spending to boost regional economies. The extra budget for the stimulus was expected to be passed Friday evening.

Japan is struggling to avoid another "Lost Decade," the period during the 1990s marked by a prolonged stretch of stunted economic growth and low company spending.

The preliminary core CPI for the Tokyo area _ considered an indicator of broader price trends for the country, fell 0.5 percent for November, heralding a further nationwide drop this month.

In September, consumer prices in Japan fell 1.1 percent from a year earlier.

Japan measures consumer prices based on a broad index of categories used in everyday life, such as food, clothes and medical care.