What's happening to the world'smost prosperous economies?!?!

Japan's Core Inflation Rises,
Jobless Rate Worsens

DOW JONES NEWSWIRES
March 27, 2008 11:52 p.m.

TOKYO -- Japan's inflation rate climbed at its fastest rate in a decade in February and the jobless rate worsened to 3.9% under data released Friday, raising concerns about the health of the world's second-largest economy.
The core consumer price index, which excludes volatile fresh food prices, rose 1.0% in February from a year ago -- the fastest reading since March 1998, the Ministry of Internal Affairs and Communications said.
Japan has long struggled with deflation, or falling prices, but Friday's data, which also marked the fifth straight month of gains, show that higher prices for imported oil and commodities are adding pressure on living costs.
Separate data released by the ministry said household spending was flat in February from a year earlier, an indication that the economy was getting less support from domestic demand, while exports that have long driven the nation's growth are also losing steam.
The result fell short of the 2.5% rise expected in surveys by Dow Jones Newswires and Nikkei.
Economy Minister Hiroko Ota voiced concerns that recent sharp rises in consumer prices could have a negative impact on consumption growth.
"With economic growth pausing and workers' wages not increasing, I cannot say that recent rises in consumer prices are good," Mr. Ota told a news conference. "I'm concerned about how such price rises -- mostly stemming from rises in gasoline and food prices -- will affect consumers."
Separately, Japan's unemployment rate stood at a worse-than-expected 3.9% in February, the Ministry of Public Management said. The results reflected slowing domestic and overseas growth, which has made business less willing to hire workers.
Japan's unemployment rate was 3.8% in January.
The ministry said the total number of jobless was down by 40,000 on year, marking the 27th consecutive month of decline.
The jobless rate registered to 4.0% in September and October before dropping to 3.8% in November and staying flat for three months.
The core CPI for the Tokyo metropolitan area for March rose a preliminary 0.6% on year, the data showed. The number is considered a leading indicator for nationwide consumer prices.