The key gauge of consumer prices in Tokyo fell 0.1 percent in July on a year-on-year basis, marking a record 58th straight month of decline, the government said Friday.
The reading indicates that deflation still persists in Japan.
The consumer price index for Tokyo's 23 wards, excluding volatile perishable food prices, stood at 97.3 against the 2000 base of 100, the Public Management, Home Affairs, Posts and Telecommunications Ministry said in a preliminary report.
The key CPI, regarded as a leading indicator of prices nationwide, dropped by 0.1 percent for the five months through July.
The latest reading shows that it will take more time for the upturn in wholesale prices to spill over into consumer prices.
Japan's wholesale prices in June rose for the fourth straight month against a backdrop of rising crude oil prices, the central bank said earlier this month, indicating the world's second-largest economy is moving out of deflation.
Items that saw a sizable decline in prices included personal computers and other durable goods used for entertainment and educational purposes, as well as household items such as refrigerators and laundry machines.
Laptop computers posted a 28.2 percent drop.
In contrast, retail gasoline was among the items that registered a notable price increase.
Regular gasoline posted an 8.1 percent rise.