Japan’s key consumer prices slid at the fastest pace in 10 years in November, data showed, as the central bank wraps up a policy meeting and the nation battles a resurgence of the coronavirus.
Prices excluding fresh food fell 0.9% from a year earlier, as a steeper drop in energy costs drove the index down further after October’s 0.7% drop, the internal affairs ministry reported Friday. The result matched the median forecast from economists.
While weak prices aren’t expected to trigger more stimulus from the Bank of Japan anytime soon, continued price falls could entrench lower inflation expectations, a longer-term problem for the BOJ. For now, the bank’s focus is making sure markets stay stable and businesses can get credit.
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