Consumer prices also dipped, indicating that deflation continues to remain a hurdle in boosting domestic demand. Japan has been seeking to spur domestic demand to offset the decline in exports, which have fallen for six months in a row, and sustain growth.
Japan has been battling with deflation or falling consumer prices for many years. It has hurt attempts by Japanese policymakers to boost domestic consumption as consumers and businesses tend to put off purchases in the hope of getting a cheaper deal later on.
According to the latest data, the core consumer prices index, which excludes fresh food, fell 0.1% in November, from a year earlier.
Japan’s central bank, the Bank of Japan, is already under pressure from new Prime Minister Shinzo Abe to take steps aimed at tackling deflation.
Meanwhile, the Ministry of Economy Trade and Industry said that industrial production fell 1.7% from the previous month. Compared with the same month a year earlier, it was down 5.8%. Industrial output has been hurt by a dip in demand for Japanese exports from key markets such as eurozone and China.
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