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| Version 0 | Version 1 |
|---|---|
| Japan says deflation has returned | Japan says deflation has returned |
| (20 minutes later) | |
| Deflation has returned to the Japanese economy for the first time since 2006, the government has warned. | Deflation has returned to the Japanese economy for the first time since 2006, the government has warned. |
| The Cabinet Office said the falling prices could hurt the recovery of the economy, which left recession in the second quarter of this year. | The Cabinet Office said the falling prices could hurt the recovery of the economy, which left recession in the second quarter of this year. |
| Despite the government's announcement, the Japanese central bank kept interest rates on hold at 0.1%. | Despite the government's announcement, the Japanese central bank kept interest rates on hold at 0.1%. |
| The Bank of Japan said the Japanese economy was continuing to be helped by policy measures at home and abroad. | The Bank of Japan said the Japanese economy was continuing to be helped by policy measures at home and abroad. |
| Japan's economy grew by 4.8% in the July-September period - the second consecutive quarter of growth. | Japan's economy grew by 4.8% in the July-September period - the second consecutive quarter of growth. |
| 'Future discussions' | |
| Some investors think the government wants the central bank to do more to stop prices from falling. | Some investors think the government wants the central bank to do more to stop prices from falling. |
| "We have no specific ideas in mind at the moment," said Keisuke Tsumura, parliamentary secretary of the Cabinet Office. | "We have no specific ideas in mind at the moment," said Keisuke Tsumura, parliamentary secretary of the Cabinet Office. |
| "It will depend on how discussions develop in the future." | "It will depend on how discussions develop in the future." |
| Deflation is, as it sounds, the opposite of inflation, meaning that the general level of prices in a country are falling. | |
| Declining prices might sound like good news for consumers, but in fact this is bad for everyone. | |
| As people wait for prices for prices to fall still further before buying consumer goods, it leads to a vicious circle of decreased spending and increased unemployment. |