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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