Oil and food slow Japan deflation

Japanese deflation has slowed in January buoyed by high food and fuel costs.

Consumer prices fell 0.2% in January from December, the statistical office said. Prices were unchanged from a year earlier.

However, analysts said deflation was still a problem, adding the economy was still in the early stages of recovery.

When fuel and food costs are excluded, consumer prices fell at an annual rate of 0.6%.