Key consumer prices fell at a slightly slower pace in September but failed to log gains for a sixth straight month, with economists expecting worse to come over the coming months.
A gauge of prices excluding fresh food fell 0.3% from a year earlier, largely reflecting the impact of government travel subsidies, following a 0.4% drop in August, the internal affairs ministry reported Friday. Analysts had forecast a 0.4% decline.
The figures come ahead of a meeting next week in which the Bank of Japan will give its latest inflation forecasts. While the latest data may help ease concerns of a descent into longer-term deflation for the time being, additional factors are expected to weigh on prices from next month.