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Japan nears deflation as core CPI hits 0%

Collapsing oil prices and subdued demand have again thrown Japan to the brink of deflation, despite the world’s biggest monetary stimulus programme.

Japanese core consumer price inflation, which includes energy but excludes food, fell to a year-on-year reading of zero in February. That follows a figure of 0.2 per cent in January.

Japan’s central bank, on a mission to banish entrenched deflation, has been buying assets for the past two years, promising to double the country’s monetary base. It moved up a gear last October with a “double bazooka” that accelerated purchases to Y80tn a year.

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