Wednesday, 12th August 2009
In Business In Japan,
Prices plunge in Japan
Prices of wholesale goods in Japan dropped at a record rate last month, new figures have revealed.
Newly released statistics from the Bank of Japan show that wholesale prices fell by a record 8.5 per cent in the country last month, when compared with figures from July 2009.
The drop has been attributed to an anaemic demand due to the recession and a fall in the price of oil.
On top of the wholesale price news, figures also indicated that the price of consumer goods fell by 1.7 per cent in the year to the end of June, another record-breaking dip.
Takesh Minami, from the Norinchukin Research Institute, said that Japan is set to see increasing downward price pressure due to weak demand.
Bank of Japan governor Masaaki Shirakawa said that it may be some time before the falls in prices begin to ease.
Japan is currently in the middle of its worst recession since the Second World War.
Written by Mark Smith.