InvestmentsAug 26 2016

Japan’s core measure of inflation declines further

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Japan’s core measure of inflation declines further

Japan’s core consumer price index (CPI) fell for the fifth consecutive month in July.

The measure of inflation, which excludes fresh food and energy prices, shrunk 0.5 per cent in July, down from -0.4 per cent in June, according to the Bank of Japan (BoJ).

The country’s central bank is facing mounting pressure to announce further monetary easing at its next meeting in September, as it continues to target 2 per cent inflation.

At its last meeting the BoJ held interest rates and announced a doubling of its purchase of exchange-traded funds to 6trn yen, falling short of market expectations.

The Nikkei 225 index closed down 1.2 per cent to 16,360.71 on August 26 following the latest disappointing inflation data.