Japan’s Deflation Moderates on Tobacco Tax Increase

Japan’s consumer prices fell for a 20th month in October, with declines moderating after the government raised tobacco taxes.

Consumer prices excluding fresh food fell 0.6 percent from a year earlier after dropping 1.1 percent in September, the statistics bureau said today in Tokyo. The government’s Oct. 1 tax increase, which boosted the cost of cigarettes by a third, added 0.28 percentage point to the figure, the bureau said.