November 26, 2010 9:04 PM

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Japanese consumer prices fall for 20th month in a row

Japanese consumer prices fell for the 20th month in a row in October, further evidence that the government is struggling to combat the deflation that is undermining economic recovery. Official figures showed the core consumer price index fell by 0.6 per cent compared with a year earlier. This was a slight improvement on the 1.1 per cent price falls seen in September. Japan is also struggling with a strong yen, which makes exports more expensive to overseas consumers. Figures released showed export growth slowing for the eighth month in a row, with exports to Europe falling for first time for almost a year. Later today, Japan's parliament will vote on a new 61 billion dollar stimulus plan to try to boost the flagging economy. It includes measures to help small businesses and encourage consumer spending. Both the government and the central bank have attempted several stimulus measures, but these have so far failed to spur growth.

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