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Economy

Japan's consumer prices fall at decade-fast pace

CPI fell 1.0% in December from year earlier as deflationary pressures intensify

The latest core consumer price index data highlights the risk of Japan sliding back to recession and deflation as COVID-19 wipes out the benefits of former premier Shinzo Abe's "Abenomics" stimulus policies.   © Reuters

TOKYO (Reuters) -- Japan's core consumer prices slumped in December at the fastest annual pace in a decade, a sign of intensifying deflationary pressures that sharpen the case for the central bank to come up with better ways to combat the deepening impact of the COVID-19 pandemic.

Friday's weak data underscores the challenges policymakers face in preventing the spread of the virus without adding to the strain on an economy already suffering from a renewed state of emergency rolled out this month.

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