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| Version 1 | Version 2 |
|---|---|
| Japanese inflation sinks to new low | Japanese inflation sinks to new low |
| (about 4 hours later) | |
| Japan's consumer prices dropped for the fifth consecutive month in July, adding to pressure on the government to expand its already massive stimulus programme. | Japan's consumer prices dropped for the fifth consecutive month in July, adding to pressure on the government to expand its already massive stimulus programme. |
| The data was worse than estimates had suggested and marked the biggest annual drop in more than three years. | The data was worse than estimates had suggested and marked the biggest annual drop in more than three years. |
| The consumer price index, which excludes volatile food prices, fell by 0.5% compared with a year earlier. | |
| Tokyo has been trying to raise inflation for years to stimulate spending and boost the economy. | Tokyo has been trying to raise inflation for years to stimulate spending and boost the economy. |
| The disappointing data comes on the heels of weaker-than-expected economic growth released earlier this month and despite an aggressive spending policy by the government. | The disappointing data comes on the heels of weaker-than-expected economic growth released earlier this month and despite an aggressive spending policy by the government. |
| In July Prime Minister Shinzo Abe announced the latest stimulus effort, a massive new package worth 28 trillion yen ($265bn; £200bn). | In July Prime Minister Shinzo Abe announced the latest stimulus effort, a massive new package worth 28 trillion yen ($265bn; £200bn). |
| Japan has been desperate to boost consumer spending for years which accounts for 60% of the economy. | Japan has been desperate to boost consumer spending for years which accounts for 60% of the economy. |
| The government's policy of economic reforms - dubbed Abenomics - consists of a three-pronged fiscal, monetary and structural approach to lifting the economy out of its protracted slump. | The government's policy of economic reforms - dubbed Abenomics - consists of a three-pronged fiscal, monetary and structural approach to lifting the economy out of its protracted slump. |
| The three arrows: explaining Abenomics | The three arrows: explaining Abenomics |
| Yet despite three years of Abenomics, inflation has remained significantly lower than the central bank's 2% goal. | Yet despite three years of Abenomics, inflation has remained significantly lower than the central bank's 2% goal. |
| Persistently weak household spending is to blame combined, more recently, with a strengthening yen which has pushed down import prices. | Persistently weak household spending is to blame combined, more recently, with a strengthening yen which has pushed down import prices. |
| Analysts expect the rate to remain low or even fall further. | Analysts expect the rate to remain low or even fall further. |
| "As such, inflation expectations may weaken further in coming months," Marcel Thieliant, senior economist at Capital Economics said in a note. | "As such, inflation expectations may weaken further in coming months," Marcel Thieliant, senior economist at Capital Economics said in a note. |
| "The Bank of Japan has recognised that there are considerable risks to its forecast of hitting its 2% inflation target in the coming fiscal year. We therefore continue to expect more stimulus to be introduced at the Bank's September meeting." | "The Bank of Japan has recognised that there are considerable risks to its forecast of hitting its 2% inflation target in the coming fiscal year. We therefore continue to expect more stimulus to be introduced at the Bank's September meeting." |