Surprise drop in prices shows recovery cooling


28/07/2012 15:16 AST  The Japan Times

Consumer prices unexpectedly fell and retail sales missed analysts' forecasts, adding to evidence that the economy's expansion is faltering as gains in the yen and austerity measures in Europe affect exports, the government said Friday.

Consumer prices excluding fresh food fell 0.2 percent in June from a year earlier, after the median estimate in a Bloomberg News survey predicted no change.

Retail sales rose 0.2 percent, separate data showed. However, this was the smallest gain since November and less than a median forecast of a 1.1 percent increase.

They also logged a seasonally adjusted 1.2 percent fall from May. Analysts had estimated a 0.2 percent increase.

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