Japan's core consumer price index dropped 0.2 percent from a year earlier in January, marking the 23rd straight month of decline, the Ministry of Internal Affairs and Communications said in a preliminary report on Friday.
The CPI reading in the recording period, which excludes volatile fresh food prices, was less than median economists' forecasts for a 0.3 percent retraction, but the government report noted that the pace of the decline had slowed from a 0.4 percent drop logged in December last year.
The government said the decline in January was predominantly attributed to lower prices for durable goods such as consumer electronics on sale in the post-holiday period and ongoing drops in high school tuition fees after state subsidies kicked-in last April.
The ministry also highlighted rising energy costs in Japan, which increased 0.7 percentage point in January over a month earlier to 4.7 percent.
In the Tokyo Metropolitan area specifically, energy costs jumped 1.4 percent in February, although the pace had slowed from the 2.8 percent on year leap logged in January, the ministry said.
Meanwhile, Tokyo's core CPI fell 0.4 percent on year in February, for the 22nd straight year-on-year drop, with the pace of decline accelerating from the 0.2 percent fall booked in January, according to the government data.
The capital city's CPI was slightly above median market expectations for a 0.3 percent decline.
Consumer prices in the Tokyo Metropolitan area are largely seen as precursor of prices across the country and Japan's central bank pays particular attention to this leading indicator.