Japan's inflation lower than expected

Japanese core CPI for July showed a smaller than expected rise in inflation of 0.2% year on year.

The core CPI measure used excludes volatile fresh food prices. However, if energy costs were excluded as well, then the index would have actually fallen by 0.3%.

The recent changes to the calculation method of CPI by altering the base year from 2000 to 2005 and a revision of weights to modern consumption patterns are being held responsible for the low numbers. The new calculation method shaved aro

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