Japan's Corporate Goods Price Index, which looks at wholesale inflation or goods companies sell to one another, fell a record 6.6% from a year ago and the downward trend continues to accelerate.
Japan was mired in deflation in the early part of the decade, and it took a global recovery and record oil prices to bring prices above the flat-line. But the country's export-dependent economy suffered tremendously in 4Q08 and 1Q09, while the strong yen added to deflationary pressures.
Falling prices could encourage officials at the Bank of Japan to maintain a cautious outlook at the next meeting.
Thursday, July 9, 2009
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