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TOKYO (MNI)

Downward pressure on both overall CPI and inflation expectations from corporate price cuts expected on April 1 continues to concern officials at the Bank of Japan, MNI understands.

From the start of the new fiscal year, companies across Japan by law must price tag all good with prices net of all inclusions, including sales tax and the Bank is concerned that this will lead to a rounding down of prices in the current challenging conditions. Apparel Uniqlo and GU have gone even further, announcing this week that they will slash retail prices by 9 percent.

Bank officials will watch closely to see if the price cuts spread from the retail sector to other industries, perhaps increasing downward pressure on prices, with a particular concern on the overall impact on consumer inflation expectations.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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