|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    20th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News




Japanese unemployment edges higher, deflationary pressures continue

Bookmark and Share

by Kay Mitchell
”Japanese

The world’s second largest economy was dealt a double blow of bad news today as figures revealed unemployment rose for the third consecutive month in April.

The unemployment rate rose unexpectedly to 5.1% in April from 5% in March – the highest level since January.

The number of unemployed stood at 3.56 million, up 2.9% from a year ago, the Ministry of Internal Affairs and Communications said.

However, the main issue continues to be deflation. Japan’s core consumer price index, which excludes volatile fresh food prices, fell 1.5% in April from a year ago – representing the 14th straight month of decline and larger than a 1.2% fall in March.

Deflation (where prices fall rather than increase) can be a serious threat to an economy because it deters consumers and businesses from spending in expectation of falling prices.

Japan has battled with deflation in the past and was a problem for the economy during its so-called “Lost Decade” in the 1990s in which the economy struggled with falling prices

“Deflationary pressure is there and the size of the fall is still significant. The rate of improvement is still slow,” said Yoshiki Shinki, senior economist at Daiichi Life Research Institute.

Another risk for the Japanese economy is the country’s debt, which currently stands at nearly 230% of GDP – the highest of any industrialised nation.

Discuss this in the Finance Markets forums

Story link: Japanese unemployment edges higher, deflationary pressures continue



News posted: May 28, 2010

Financial Services:





Related financial stories to: Japanese unemployment edges higher, deflationary pressures continue:
Previous: «
Next: »

Visited 2996 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , , ,