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Wednesday, April 7, 2010 as of 11:14 AM ET

Deflation

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).

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Japan's Consumer Prices Rise Steadily In April

Japan's consumer prices stuck to an inflationary path in April, with the Finance Ministry reporting Friday that the core consumer price index rose 0.

2% from a year earlier, identical to its gain for March. Separate Dow Jones Newswires and Reuters surveys had found expectations for the core CPI, which excludes volatile fresh-food prices, to rise 0.1%. On a monthly basis, core CPI was also 0.2% higher, led by a 2.1% rise in clothing and footwear. The overall CPI, meanwhile, rose 0.1% in April, for a 0.4% year-on-year gain. Japan is seeking to end a long, sporadic spell of deflation, and Credit Suisse said earlier this month that it expects victory on this front next year, when it sees consumer inflation potentially averaging 1%. On a more downbeat note, however, core consumer prices fell 0.2% in metro Tokyo so far in May. The preliminary results for the Tokyo CPI are seen as a leading indicator of national price trends.Copyright © 2012 MarketWatch, Inc....

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