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Sustain employment to stop domestic economy from returning to deflation

There is growing concern about the Japanese economy returning to deflation. The government and the Bank of Japan should closely watch price trends and implement

There is growing concern about the Japanese economy returning to deflation. The government and the Bank of Japan should closely watch price trends and implement appropriate policy management.

The April consumer price index, excluding perishable foods, fell 0.2% from a year earlier. This was the first time the index fell in three years and four months.

Crude oil prices plummeted due to a drop in global demand caused by the spread of the new coronavirus, leading to lower gasoline and electricity costs. Fees for accommodations and package tours abroad, among other items, also fell due to people refraining from going out and restrictions on travel overseas.

Although economic activities are resuming, the recovery of demand in the service industry, such as for accommodations and eating out, is expected to take some time. The central bank estimates the inflation rate will be in negative territory in fiscal 2020.

The April consumer price index, excluding perishable foods, fell 0.2% from a year earlier. This was the first time the index fell in three years and four months.

Crude oil prices plummeted due to a drop in global demand caused by the spread of the new coronavirus, leading to lower gasoline and electricity costs. Fees for accommodations and package tours abroad, among other items, also fell due to people refraining from going out and restrictions on travel overseas.

Although economic activities are resuming, the recovery of demand in the service

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