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Japan figures show recovery is still far off
26.06.09
Fresh worries about the recovery of the global economies burst out today with fears that Japan's fightback was faltering with massive deflation.
Consumer prices in the world's second biggest economy fell at a record pace in the year to May - a key sign that confidence in the country remains incredibly weak. Stripping out fresh food, prices fell 1.1% from a year earlier compared with the previous month's 0.1% drop. UK inflation is currently running at 2.2%.
"Deflation is getting worse and underscores that the Bank of Japan cannot move for a considerable time," said JP Morgan senior economist Masamichi Adachi.
Readings elsewhere were also weak. New Zealand's economy shrank for a fifth straight quarter in the first three months of the year and South Korea's seasonally adjusted current account surplus halving in May against April.
