Japan's core consumer price index fell by a record 2.4 percent in August, sending the country into deeper deflation and reflecting the impact of a slide in oil prices, according to statistics released on Tuesday by the Ministry of Internal Affairs and Communications on Tuesday.

The core consumer price index measures the price of products excluding fresh fruit, seafood and vegetables, which can vary drastically in cost. Part of the reason for the drop is the high price of oil last year, but low unemployment and wage cuts have forced some companies to cut prices to try to attract consumers.

It is the forth consecutive month that the core price consumer index as dropped by more than one percentage point, and is a steeper decline than July's 2.2 percent or June's 1.8 percent. The core consumer price index was at 100.1, where prices in 2005 represent 100.0.

Importantly, prices excluding both energy and food, which can widely fluctuate, Japan's prices were down 0.9 percent, demonstrating that deflation is still taking place in Japan, even on goods that are not priced according to changes in unstable global markets.

In Tokyo's 23 wards, which act as a good indicator of consumer trends throughout Japan, the consumer price index also fell 2.1 percent for September, indicating there may be further bad news for the country next month.

(Xinhua News Agency September 29, 2009)