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Japan also released some data of its own. Wholesale prices fell 0.1 percent there in July. The fall was mainly due to the yen's appreciation and a pullback in commodity prices.
The figure released by the Bank of Japan this morning, was lower than the median forecast for a 0.1 percent annual rise. It also followed a revised 0.4 percent annual increase in June. The figure together with Japanese machinery orders were weaker than expected, prodding authorities closer to take action to support a fragile economic recovery. The index measuring corporate goods prices underlined the deflation plaguing the country. Consumer prices have fallen for 16 straight months.
Analysts say companies aren't expecting Japan's economic growth to accelerate, so it's hard for the corporate sector to boost spending.