Japan Inflation Goes Negative on Government Travel Discounts

Japan’s key inflation gauge went negative again last month, driven down by government discounts meant to boost consumer spending and help the pandemic-hit travel industry.

Consumer prices excluding fresh food fell 0.4% in August from a year earlier, falling back into negative territory again after two flat months, the ministry of internal affairs reported Friday in a result matching the median private sector forecast. A 32% drop in the cost of hotel accommodations accounted for most of the overall drop.