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"It's highly probable that consumer prices will keep falling at a moderate pace"
- Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute
Japan's year on year consumer prices decreased 0.5 per cent in October, for the first time since June, said the Statistics Bureau on Friday. Inflation data shows the country is unlikely to emerge from deflation.
"It's highly probable that consumer prices will keep falling at a moderate pace as the effect of oil prices and the strong yen gradually surface," said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo. "Price growth isn't in sight for Japan."
"The data underscores the sluggishness of domestic demand as the economy's recovery has taken a breather because of a delay in reconstruction efforts and a global economic slowdown," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo. "Companies are apparently having difficulty passing on higher energy costs to consumers."