Deflation risks rise in Japan as core consumer prices fall for second month

The BOJ has stepped up its monetary easing in response to the pandemic, but kept policy steady this week and governor Haruhiko Kuroda conceded that inflation will remain subdued in the coming years.

TOKYO: Japan's core consumer prices fell for a second straight month in May, reinforcing deflation risks and raising the challenge for policymakers battling to revive an economy reeling from the coronavirus pandemic.

Friday's price data will likely complicate the Bank of Japan's protracted efforts to foster sustainable growth and inflation, with a raft of recent indicators suggesting the nation is in the grip of its worst postwar economic slump.