Tuesday, September 29, 2009

Record Deflation in Worlds Second Largest Economy

Sept. 29 (Bloomberg) -- Japan’s consumer prices fell the most in at least 38 years in August, heightening the risk that prolonged deflation may hamper the country’s recovery from its deepest postwar recession.
Prices excluding fresh food slid 2.4 percent from a year earlier, topping July’s 2.2 percent decline, the statistics bureau said today in Tokyo. The drop, the sharpest since the survey began in 1971, matched economists’ estimates.
Even when excluding food and energy, consumer prices fell 0.9 percent in August, the same pace as July, which was the sharpest decline in seven years, the bureau said.
The yen’s rally to an eight-month high also threatens to stunt the recovery by making Japanese exports more expensive and eroding the value of repatriated profits. Japan’s currency traded at 89.96 per dollar at 9:53 a.m. in Tokyo from 89.63 before today’s report and rose as high as 88.24 yesterday, the strongest since January.
Record Unemployment
A report this week will show the jobless rate reached 5.8 percent last month, topping July’s postwar record, according to a Bloomberg News survey of economists. Wages probably slid for a 15th month in August, figures are expected to show tomorrow.

This came out last night and had to be looked for. Excluding Bloomberg Major Media had no coverage.

No comments:

Post a Comment