Japan's core consumer prices saw their 17th straight month of annual decline in July. It's a sign deflation remains deeply entrenched.
Japan's internal affairs ministry says the core consumer price index fell more than 1 percent in July from a year earlier. That doesn't bode well for the fragile economy, troubled by a strong yen. Japanese policy makers are struggling to put a cap on the surging yen, which hit a 15-year high against the U.S. dollar this week, and threatens to derail Japan's export-led economy.
Analysts say the stronger yen and slowing economy may delay Japan's exit from deflation, putting pressure on the country's central bank to ease its monetary policy further. Analysts also say Japan may remain in deflation for another two or three years.