TOKYO (Oct 28): Japan's core consumer prices fell for a seventh straight month and household spending slumped in September, endorsing the central bank's view it will take some time for inflation to accelerate to its 2% target as the economy stagnates. "Companies are struggling to raise prices because consumption is weak," said Takeshi Minami, chief economist at Norinchukin Research Institute. "The rise in household income remains modest and people aren't sure economic prospects will brighten ahead, prompting them to withhold spending." Households spent 2.1% less in September than a year earlier, marking the seventh straight month of declines, even as the jobless rate fell to 3.0%, separate data showed. That's affecting price-setting behaviour — particularly among supermarkets," Atsushi Miyanoya, the BOJ's branch manager overseeing the Kinki western Japan region, told reporters earlier this month.

Source: The Edge Markets October 28, 2016 03:04 UTC