Wednesday, 30th September 2009
In Business In Japan,
Japan hit by deflation
Japan is witnessing the deepest levels of deflation seen in the country since World War II, with a record drop revealed in September.
This month, core inflation has fallen by a record 2.4 per cent in Japan, as the country struggles after its recent recession, which was also the worst seen since the end of World War II.
Even though the level of deflation was expected by market analysts, it has led to fears that the Japanese economy could be impacted by falling inflation for at least another three years.
Chief Japan economist for Macquarie Richard Jerram told the Times: "Japan is now the only serious developed country facing deflation and effectively you cannot see what will prevent this going on for a long time."
As well as struggling with a recession, Japan has been hit by falling wages for 14 months in a row, with figures expected to show no change this month.
Written by Mark Smith.