BBC News | BUSINESS | Japan's consumer prices fall

BBC News Online: Business

Friday, 26 October, 2001, 06:59 GMT 07:59 UK

Japan's consumer prices fall

Japanese shops are still failing to attract buyers

Consumer prices on Japan's high streets fell in September, continuing a relentless two-year slide and prompting economics minister Heizo Takenaka to say the country needed a tougher approach to halting deflation.

"There's an argument that falling prices are good for consumers, but we have to acknowledge that it is clearly problematic for the macroeconomy," he said.

"We have to put a high priority - and set a target on - measures to stop price falls."

He called on the Bank of Japan to take action to halt the slide in prices.

Japan's core consumer price index dropped for the twenty-fourth month in a row in September.

The index fell 0.8% from its September 2000 level, official figures showed.

Meanwhile, retail sales fell for the sixth successive month, down 2.9% in September from a year earlier.

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