Japan deals with nasty data

CPI falls at record pace, jobless rate rises

The core rate of inflation in Japan, which excludes fresh food, fell at its fastest pace ever, while the jobless rate increased to a six year high.

The core CPI declined 1.7% from one year ago, down from May's drop of 1.3%, signaling that deflationary pressures are growing in the world's second largest economy.

Meanwhile, the jobless rate increased from 5.2% in May to 5.4% as rising exports and an improvement in manufacturing failed to buoy the labor market. Adding to the glum mood, the jobs-to-applicants ratio came in at 0.43, the worst ever.

The ratio measures the number of jobs versus the number of applicants, and the poor showing suggests unemployment is likely to go higher.