Japan's Consumer Prices Plunge

September 29, 2009 BY CAPSULESNEWS


Time to plan that shopping trip to Japan? Styesight reports that the business landscape in Japan could force many retailers to lower their prices even more than they bargained for. New reports from Tokyo's statistic bureau showed that consumer prices in Japan plunged in August by 2.4%, excluding food, to mark their biggest slide in 38 years, while advancing a 2.2% decline in July. The figures met economists' views, but also sent worrying signals that the world's second-largest economy is far from being out of the woods. Having only recently crawled its way out of one of the worst postwar recessions it has ever experienced, lifted by government stimulus spending that gave its exports a short-term spike, new worries are surfacing that Japan's economy could one again contract, spurred on by a prolonged deflationary cycle of lower prices. ..(stylesight)