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Deflation deepens in Japan in October74 days ago
(AP:TOKYO) Japan's government says deflation accelerated in October, with the core consumer prices down 2.2 percent from a year earlier.
The key consumer price index, which excludes volatile fresh food prices, has now fallen for the eight straight month. The decline was slightly more than Kyodo news agency's forecast for a 2 percent drop. Deflation can hamper economic growth by depressing company profits and increasing debt burdens.
The government also says the unemployment rate has improved. The figure stood at 5.1 percent in October, better than 5.3 percent the previous month.
The number of jobless rose almost 35 percent from a year earlier to 3.44 million, while the number of employed people fell 1.8 percent to 62.71 million.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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