Japan Price Slide Shows Risks From BOJ Delay in Easing: Economy

Japan’s consumer prices fell for the seventh time in eight months, underscoring the risk that the central bank may struggle to reach a 2 percent inflation target unless it implements new easing measures earlier than planned.

Consumer prices excluding fresh food fell 0.2 percent in December from a year earlier, the government said in Tokyo today, matching the median estimate of 23 economists surveyed by Bloomberg News. Bank of Japan Governor Masaaki Shirakawa said today that meeting the target would not be easy and that central banks need to be alert to financial bubbles.