Japan’s consumer prices dropped for a sixth straight month in April, highlighting the challenge for Prime Minister Shinzo Abe in sustaining confidence in an economic revival.
Consumer prices excluding fresh food fell 0.4 percent from a year earlier, the statistics bureau said in Tokyo today, matching the median estimate of 29 economists in a Bloomberg News survey.
This week’s slide of Japan’s stock market into a correction highlights the importance of Abe winning public and investor confidence in the “third arrow” of Abenomics, a growth strategy to accompany monetary and fiscal stimulus. The Bank of Japan expects price declines to continue for “the time being,” partly because of higher energy and durable goods costs in the past, as Governor Haruhiko Kuroda chases 2 percent inflation.
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