Consumer prices failed to rise in January for the first time in more than a year as households cut spending amid a deepening recession.
Consumer prices excluding fresh food were unchanged from a year earlier after climbing 0.2 percent in December, the statistics bureau said Friday in Tokyo. The median estimate for 32 economists surveyed by Bloomberg News was for a 0.1 percent decline. Household spending fell 5.9 percent.
A record decline in exports is prompting companies to fire workers and slash wages, depressing spending and prompting policymakers to brace for deflation. Bank of Japan Policy Board member Tadao Noda said Thursday the central bank needs to watch how "rapid" price declines will influence consumers' and companies' inflationary expectations.
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