According to the latest figures released, the consumer prices in the Japanese economy have risen at its fastest pace since 2008 during the month of July.

Prime Minister Shinzo Abe has been trying to revive the world's third largest economy behind the US and China and return from a 15 year deflation. The demand for credit in the Japanese economy has been affected due to deflation and a high exchange rate. Haruhiko Kuroda, the new Governor of the Japanese central bank had said that he would take steps to address the deflation in the country.

Consumer prices excluding fresh food rose 0.7 per cent compared to the previous year, according to the statistics bureau. The figure is higher than 0.6 per cent expected by 29 analysts surveyed by Bloomberg. Industrial output in the country rose 3.2 per cent from the previous month in the country.

The higher cost of energy due to closure of the nuclear reactors and the continued fiscal easing by the central bank that led to a third quarter of growth, has helped push prices higher in the country during the month of July.