Japan's deflation outlook not improving

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FXstreet.com (Barcelona) - Japan's core CPIs fell for a sixth straight month in the year to October, showing once again the economy remains trapped in a deflationary cycle, with a long and painful road ahead to resolve the decrease in prices.

The national CPI ex Food and Energy came at -0.5% in October vs -0.6% in the month of September, excluding Fresh Food came up to 0.0% vs -0.1%, while overall national CPI was lower to -0.4% vs -0.3%. In Tokyo region, CPI stood at -0.5% in Nov vs -0.8% in Oct. The jobless rate is unchanged at 4.2%.

The latest data will continue keeping pressure on the Bank of Japan to strengthen its loose policy commitment in order to achieve an ambitious 2-3% inflation target. The data will not help either for Japan's government opposition leader Mr. Abe to softer its aggressive rhetoric campaign towards a radical expansion of bond buys.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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