Financial Times FT.com

Japanese deflation fuels calls for action

By Robin Harding in Tokyo

Published: November 20 2009 06:31 | Last updated: November 20 2009 19:32

Japan, the world’s second-largest economy, has entered deflation for the first time since 2006, heightening political pressure on the central bank to become more aggressive in fighting falling prices.

The Bank of Japan, which has been resisting public calls by politicians for a more aggressive approach, moved towards a neutral stance on the risk of inflation on Friday.

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