labels: economy - general
Japanese economy shows mixed trendsnews
29 June 2007

Tokyo: The Japanese economy gave off mixed signals with deflationary pressures persisting despite a tightening labour market and rising consumer spending.

Japan''s core consumer prices fell 0.1 per cent in May from a year earlier, falling for the fourth consecutive month and at the same pace as in April, the government said.

The core consumer price index (CPI) for Tokyo alone in June -- seen as a leading indicator for national price trends - was also down 0.1 per cent, dampening hopes of a near-term pick-up in the country-wide indicator.

The central bank of the country remains concerned over deflation, and last July raised interest rates for the first time in almost six years, followed by another quarter-point hike to 0.5 per cent in February.

On a more positive note, Japan''s unemployment total declined by 190,000 in May from a year earlier to 2.85 million, a separate official report showed.

The jobless rate remained steady in May at a nine-year low of 3.8 per cent, slightly better than market expectations for a rise to 3.9 per cent.

The ratio of job offers to job seekers rose from 1.05 in April to 1.06 in May, meaning 106 jobs were available for every 100 job seekers.


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Japanese economy shows mixed trends