Japan's jobless rate lor January hit a record high at 4.9 per cent while I okyo-area consumer prices slipped and household spending was flat, data showed today, giving more ammunition tn politicians se< king fri'ihcr t th < m

I hr puhli' management min-jsii\ mi mwhilc revised down figures lor February and March last year to LB per cent from 4.9 per cent, which had previously liven (he highest level since World Wai II

1 he ministry also revised down previous record highs hit in February and March 2(100 to 4.8 per cent from 4.9 per ent.

Il said Tokyo-area consumer prices fell for a record 18 consecutive month in February, sliding 0.5 per cent from a year earlier and 0.4 per rent from a month ago. extended a decline that analysts say reflects virtually stagnant consumer spending.

('.ore prices for the metropolitan area excluding fresh foods slumped a record 1.1 per cent from a year ago. the data showed.

The ministry* also released nationwide consumer prices for January, which showed prices up a slight 0.1 per cent year-on-ycar. hailing a 16-month slide and re-

maining flat on the month.

(Lore nationwide prices slid 0.5 per cent on the year, down 0.5 per cent from December.

Japan's economic slump has dealt a heavy blow to consumers, whose spending provides about GO pel cent of the economy. High school and university students have been particularly hurt as companies slash costs by hiring fewer graduates.

“Of course, the economy is in recession. My dad's lost his joh. I have another year before I start looking for a job, so I hope things get better by then." 20-year-old student Yasushi Ishiguro

1 he data showed that the average wage-earning household spent 333,031 yen ($2,838) in January, flat in both nominal and actual terms from the same month a year earlier, although up a slight 0.8 per cent from (he previous month.

Persistently weak consumer spending has raised concerns that Japan could slip into a deflationary spiral - largely defined as a vicious circle of falling prices causing economic stagnation.

Bank of Japan (BOJ) Governor ‘Masaru Hayami, though softening his tone slightly, has stubbornly claimed he sees no dangers of a deflationary spiral.