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Consumer price hike data boosts Japan's deflation battle

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Has anyone noticed that a lot of food items have risen in price recently ? Fortunately, I buy from one of these special low price markets that carry Japanese and overseas food items. Miles cheaper. It is hard to believe that they can sell the same goods as in the supermarkets much cheaper, yet their buying power would not match the larger supermarket chains.

1 ( +3 / -2 )

I doubt that salaries will increase a lot in fiscal 2014! If you get paid an hour and they give between 10 and 50yen more that probably gives the average Joe some 5000 - 10.000yen more a month, which he will spend on the tax for increase products. So Joe will probably have to spend more from April 2014 than what his salary increase will be if it will increase which I HIGHLY DOUBT!

1 ( +2 / -1 )

Can't see anything in this news that gives me hope for the economy. Inflation is not being caused by, or indeed causing increased demand, all that is happening is the prices of essentials are increasing, leaving me less money to spend on other items, services etc. Own goal.

3 ( +4 / -1 )

How does Abe figure the country will be more beautiful because of inflation? Beautiful for who? Big businesses, perhaps?

Unlimited growth will not work as well as abe and his pals think. I believe the golden days of yore are over for Japan and until they understand that they have to come up with new ideas, they will continue to sink in importance and on the world economy list.

1 ( +4 / -3 )

Sorry, but the consumer spending is ONLY because prices will rise from April, will consumer spending will drop rapidly, and become even worse than before Abe promised to hike taxes.

VicMOsaka: "Has anyone noticed that a lot of food items have risen in price recently ?"

Not only food items, but electricity and other costs have increased. I paid the single highest energy bill I've ever paid in my long time in Japan this month, and I was never at home to use the energy. My fridge was on, and that's it. For food items that do NOT have an increased price, you'll often find the net weight of the product is less, which is basically the same thing (paying more for less).

Basically all this 'proof of battle against deflation' stuff is just the government trying to paint a pretty picture before it crashes.

3 ( +6 / -3 )

This is just as another smoke and mirrors report. It means absolutely nothing! It clearly states the increase in costs is only because of increased fuel prices. The thing that really boils my blood is, Abe cut corporate taxes so employers could raise salaries to compensate for the pending sales tax increase, but most employers have stated they have no intention of increasing wages and, Abe is doing nothing about it. He should be ordering these corporations to increase salaries! Once the sales tax increase hits and filters down to the consumer it will cost the average family at least an extra 10% at the check out and that is only worth the first stage 3% increase. Gawd help the working class after the full 5% increase takes affect. We will see a marked increase in poverty and a subsequent increase in petty crime.

1 ( +2 / -1 )

Excellent. This will be welcome news at my factory what with the wage cuts and layoffs and all.

2 ( +3 / -1 )

Inflation, perpetual growth, trickle down economy for the good socially responsible Japanese companies, myth that politicians spout to make sure the idiotic masses keeps electing them over and over and over again.

-1 ( +1 / -2 )

Great point, VicMOsaka

Look at some of the stuff Daiso can sell for ¥110.

Will Japan will be a much healthier and wealthier society when it can admit:

There's no shame in value for money?

0 ( +0 / -0 )

Seeing the word "boost" in the headline, I thought this would be a positive story. However, it appears to be just the opposite. Prices are rising across the board ... and surely Abe's 2% inflation increase must have been met by now despite the figures cited in the above story.

Sitting around thinking about all of this, perhaps we should scrap the words "inflation" and "deflation" and coin a new one: "Abeflation."

"Abeflation" and "Abenomics" would surely go hand in hand ...

You know the song, "Where have all the flowers gone ..." Well, I know a lot of people who are now singing, "Where have all my coins gone ..."

-2 ( +0 / -2 )

How is trying to get 2% inflation a good thing? I get that they want people spending to boost the economy, but look at the US. Most are in debt or have little savings, yet the FED keeps interest rates low and has unlimited rounds of QE trying to get people to spend. Its been going on too long that if it stops i think America is in for a reality check. I think most people in the world are just getting by and spend when need be, but central bank easing and government spending IMO are counterproductive and manipulate the markets.

0 ( +1 / -1 )

Raising the sales tax now is gonna sink the economy again for another 10 years.

0 ( +0 / -0 )

Oh great...this overpriced country is getting more expensive. I'll rejoice when I get a meaningful ,(or any!) raise, which will happen when pigs fly.

1 ( +2 / -1 )

Japan is vastly overpriced,the people live in cramped conditions (mostly), working hours are long! Now,people on the breadline are going to be paying more for basic utilities, food and clothing.

The only other increase I foresee is in the suicide rate as people start to give up.....

1 ( +1 / -0 )

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