Financial Times FT.com

Japan’s phone wars raise deflation fears

By David Pilling and Mariko Sanchanta in Tokyo

Published: October 3 2007 19:42 | Last updated: October 3 2007 19:42

A price war aimed at Japan’s 100m mobile phone users could have a significant impact on the core consumer price index, potentially prolonging the country’s brush with deflation, economists warned on Wednesday.

Any impact will depend on how new optional fee structures, the first of which are likely to be announced on Thursday, are treated by government statisticians.

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