Price of Japan's corporate services down 1.3% on year in February

13:42, March 25, 2010      

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The price of corporate services in Japan fell 1.3 percent in February compared with the same month of previous year, according to data released by the Bank of Japan ( BOJ) on Thursday.

Prices of corporate services have seen year-on-year declines now for more than 18 months, and in February, the index stood at 97.4, where 100.0 marks the average prices in 2005.

On a monthly basis, prices increased by 0.1 percent, after declining by 0.4 percent in January.

Contributing to the monthly rise in prices in February were advertising services and information and communications, while transportation, real estate and finance all saw prices drop slightly over the month.

The fall in corporate services prices will contribute to growing concerns in Japan that the fall in prices may harm the nation's fragile economic recovery. While increases in exports, a growth in positive sentiment and robust production signal the recovery is strengthening, prices in the domestic market continue to fall.

Minutes released earlier in the week from a BOJ meeting in February showed that some members of the board at the bank are concerned that the decline in prices may have a negative impact on the economy.

Finance Minister Naoto Kan has pushed the bank to do more to tackle falling prices.

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