The key gauge of consumer prices in Tokyo dropped 1 percent in July from a year earlier, for a record 34th straight monthly fall, the government said Friday in a preliminary report.

The index was down 0.1 percent from the previous month.

The consumer price index for Tokyo's 23 wards, excluding volatile prices of perishable foods, came to 97.8 against the 2000 base of 100, the Ministry of Public Management, Home Affairs, Posts and Telecommunications said.

Consumer prices in Tokyo are regarded as the leading indicator of prices nationwide.

The Tokyo CPI, including perishables, fell 0.9 percent from a year earlier to 97.8 for a record 35th month of decline, while dropping 0.2 percent from the previous month, the ministry said.

Prices of durable educational and entertainment goods, such as personal computers, fell 12.8 percent from a year earlier, with prices of desktop PCs down 21 percent and those of notebook PCs falling 17.6 percent.

Electricity fees declined 5.6 percent as Tokyo Electric Power Co. made cuts to reflect increased efficiency in operations.

Prices of household durable goods fell 10 percent, while those of clothes dropped 4.5 percent and housing rents slipped 0.8 percent.

Compared with the month before, prices of clothing and shoes dropped 3.7 percent, reflecting a trend among retailers to hold summer discount sales as early as July.

Food prices fell 0.4 percent, with prices of fresh fruit, including cherries and watermelons, falling 8.4 percent.

In contrast, prices of entertainment services grew 0.5 percent as prices of overseas package tours increased 14.5 percent from June, reflecting higher prices in the summer holiday season.

The nationwide CPI, excluding perishables, fell 0.8 percent in June.

The nationwide CPI, including perishables, was down 0.7 percent to 98.6 for the 34th consecutive month of decline, while registering a 0.1 percent fall from the previous month.