Japan Deflation For Six Month In Row

Japan's Consumer Price Index dropped back to sixth time in seven months. Japan Bureau of Statistics data showed the consumer price index-outside-fresh food prices fell 0.2% in December from a year earlier. This figure had been predicted earlier by 23 economists surveyed by Bloomberg.

It is a challenge for the Bank of Japan as the new inflation target of the central bank are capped at 2%. According Yasutoshi Nishimura, Deputy Minister of Economy of Japan, will be very difficult for the BOJ to achieve the inflation target in the absence of policy easing as weakening that occurs at the level of 100 yen per dollar towards the U.S..

"Without a doubt, the inflation target of 2% is too high for the BOJ. BOJ should implement a more lenient policy anymore," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co. in Tokyo.

For the Record, at 8:48 pm in Tokyo, the yen fell 0.2% to 90.61 per dollar.