Japan output rises, deflation possible
While factory output from Japan has risen this year, the Japanese government warns that a fall to consumer prices may negatively affect the renewed economy.
The latest data shows a 2.5 percent rise in industrial output in January, compared to December last year, with overseas demand for goods – in particular cars and electronic goods – on the rise. The government has confirmed that exports during January rose at its fastest pace for 30 years, with Asia, especially China, increasing its buying.
Despite these figures, the country recorded a 1.3 percent fall in consumer prices compared with January last year, the 11th consecutive decline of this nature.
“The CPI data show deflation is continuing. We need to do more to get out of it,” said JapanÕs Finance Minister Naoto Kan after the figures were released.
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