Collapsing prices revive fear of deflation in Japan

09/30/2009 | Japan Times, The

Japan's consumer price index dropped 2.4% last month compared with August 2008, renewing concerns that the country is in danger of slipping into deflation. The decline is the biggest since the government started collecting consumer-price data in 1971. Tetsufumi Yamakawa, chief economist for Japan at Goldman Sachs, said he sees "no end to the vicious spiral leading from price decline to wage decline."

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