- Kiichi Murashima, chief economist at Citigroup Inc.
A gauge, which measures corporate service prices in the world's biggest economy, fell more than expected in October, adding to concerns that the country will miss its 1% inflation level and the BoJ need to take more bold actions to boost economic growth. The Bank of Japan said that corporate service prices fell 0.7% in October, standing at 95.5, down from 0.5% decline in the prior month. Analysts had predicted nation's corporate services prices to erase only 0.6% from a month ago. As the leading indicator of consumer inflation fell, more pressure is put on the BoJ to expand its asset purchase programme, which now stands at 91 trillion yen.
"There are no positive signs in Japan's economy," as domestic demand slumps and external demand remains weak, said Azusa Kato, an economist at BNP Paribas SA in Tokyo. "The economy will probably contract for two consecutive quarters through the end of the year."
"There's no doubt that Japan's economy is already in a recession," said Kiichi Murashima, chief economist at Citigroup Inc. in Tokyo. "Political pressure for further monetary easing is building, and we expect the BOJ to take additional measures in January."
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