Japan’s consumer prices continued to decline in July for the 17th straight month, in another sign that the country’s economy remains mired in deflation and further raising hopes for additional monetary easing by the Bank of Japan. The nationwide core consumer price index, which excludes volatile fresh food prices, fell 1.1% from a year earlier in July, data from the Ministry of Internal Affairs and Communications showed Friday. The result was in line with the median forecast in a poll of economists by Dow Jones Newswires and the Nikkei, and slightly worse than the 1.0% slide in June.

The latest price data confirm prolonged deflationary pressure in Japan, further fueling concerns over the sustainability of the current economic recovery. Some analysts expect deflation to linger as the yen remains strong while the outlook for the U.S. and European economies uncertain, dragging on Japan’s export-driven economy and reducing the prices of oil, food, metals and other commodities that the country buys from overseas.