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Consumer prices rise at fastest pace since late 2008

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Average household spending fell 1.4% in July from a year earlier, though and household income and the jobless rate improved.

meaning people are living in anxiety.

5 ( +8 / -3 )

Does anyone expect a consumption (sales) tax of 10% of NOTHING to bring income to the government? Lower the consumption tax to 3% and give tourist a VAT refund at departure to increase sales, employment, and income to the government. If Japan invests in Japan first, then other countries, the economy will improve. "Nice guys finish last," and Japan has a good opportunity to meet that goal by increasing the taxes.

3 ( +4 / -1 )

As the tax has not gone up yet, you might have expected people to be spending now before it does, rather than saving... I guess they are really worried about it.

2 ( +3 / -1 )

You think spending is down now, wait until you've a combined increase in sales tax AND inflation.

This is what happens when you let idiotic politicians (paid for by bankers) front end the economy.

7 ( +9 / -2 )

Evidence that Keynesian asinine central planning is a recipe for economic collapse. These are just the preliminary indications.

4 ( +6 / -2 )

We all know that wages will not keep pace with inflation and then add the increased sales tax. Hate to see what things will be like in 2 or 3 years. How are regular people going to live? People will be buying only necessities. Put minimum wage up to 1200 Yen/hour and then we can talk sales tax increase and inflation.

2 ( +4 / -2 )

I hope these are not signs of stagflation.

2 ( +3 / -1 )

Everyone I have talked to have no hope or expectation that their salaries are going to rise. Thus the increase in inflation and prices will only serve to make people buy less and save more. Not sure who this policy is going to benefit, but for all the retailers and big businesses that are consulting with the Abe gov't, they are in for a big surprise!

2 ( +3 / -1 )

Mark, salaries generally always rise, they just need to rise faster than they've been doing so. We're raising them at my company, though we're in export so we're happy right now.

-4 ( +5 / -9 )

Yet, Abe is still proclaiming his economic reforms will increase disposable income for families. How exactly? Increased sales tax, utility costs, pension and health insurance will all combine to increase consumer prices for every commodity. Where are the savings coming from? It's all BS!

2 ( +4 / -2 )

Peter Payne. I beg to differ. When is the last time the minimum wage went up in Japan? Many people I know have had their salaries go down in recent years.

4 ( +7 / -3 )

Household spending dropped 1.4%!

Wow!

Unemployed dropped from 3.9% to 3.8%

Unbelievable!

"We've never had it so good!"

We obviously need these massive improvements to bolster us up for when the secret negotiations with the TPP hit.

When keijidosha (light cars/yellow numberplates) are taxed the same as other cars, thousands are out of work because cheap rice and produce is flooding in from California, there will be health care for those who can afford it and nothing for those who can't and sales tax (VAT) is 20%.

2 ( +3 / -1 )

Japan is still really cheap compared to other parts of the world. You can still get a decent lunch in Tokyo for under ¥1000. Take my hometown, Sydney, for example - (all prices in yen)

bottle of water - ¥380 cafe sandwich - ¥1500 dinner for two at a restaurant - ¥10,000+

and the killers are:

electricity - ¥30,000 / month (avg. household) water - ¥10,000 / month (avg. household) rent - ¥140,000 / month (average!)

All things in perspective!

-1 ( +2 / -3 )

@sighclops

Too true but what you fail to mention is that the salaries in Oz have also risen to a large degree in tandem with prices.

Yesterday I paid y172 for a litre of gasoline at my local garage,. I don't use my car that much so a rise to y200 yen a litre would not be of concern- but it is, and will be to the millions of Japanese here using their cars for work purposes.

Abe wants higher prices but what he doesn't understand is that the prices in Japan are still too high at present

Nowhere in Asia that I have been to has prices as outrageous as Japan's!

For the last decade i have seen wages here stagnate and even go down- I have had wage cuts myself so I know that it is not a rare phenomenon

The BOJ is in the process of adding to the money supply thus causing an inflationary spiral WITHOUT productivity rising at the same time! The result is that there will be too much money chasing too few assets-the result is inflation

I predict Japan will be trapped in stagflation and the economy will slowly go off the cliff.........

4 ( +5 / -1 )

And now the LDP will reward us all with a consumption tax increase. Let the good times roll.

4 ( +5 / -1 )

Peter PayneAug. 30, 2013 - 11:47AM JST

Mark, salaries generally always rise, they just need to rise faster than they've been doing so. We're raising them at my company, though we're in export so we're happy right now.

Correct me, if I'm wrong but you run your own fish and chip shop size export business that employs about 5 people in the middle of Gunma. You're are hardly indicative of Japan Inc.

Those of us working in the big companies, mine employs 52,000 workers, have not seen any increase in our base salaries for years and have been informed that at next year's pay negotiations, we will not see an increase in base salaries. At best, the summer bonuses might see an increase and some of the unpaid overtime that everyone is doing, might get paid.

Abenomics is pure economic BS and this time next year, stagflation will have truly set in and the sovereign debt will be 250% of GDP.

5 ( +8 / -3 )

Hurrah! Inflation is back!!

-2 ( +0 / -2 )

Printing money = increased prices. So why does a company I work for want to decrease our payment for services? Double inflation it seems.

Maybe they didn't hear Abe ask Japan to hire more people and pay more.

There is worse to come.

2 ( +2 / -0 )

Onniyama, minimum wage in Japan went up last year.

http://www.mhlw.go.jp/seisakunitsuite/bunya/koyou_roudou/roudoukijun/minimumichiran/

1 ( +2 / -1 )

I wish those who write sentences such as above ... "The latest numbers will provide a lift for Prime Minister Shinzo Abe, who has pledged to reverse 15 years of deflation with active spending, which he says will stoke growth" ... will go jump in the lake. Okay, so Abe is happy. He is happy he is ruining the already battered economy.

Take for instance my Ginza bar mama-san friend who also owns a high-class restaurant in central Tokyo. Last December she was eager for Abe to take over the government, saying he will solve the economic problems. When I saw her several weeks ago, I asked her what she thinks of Abenomics. She flashed me an angry look and said Abenomics are hitting her hard. They are damaging her businesses. Prices are going up, customers are staying away.

The public bathhouse where I go nightly is also in trouble. The owner said he might have to close because Abenomics has driven up the price of heavy oil, which he uses to fire up the boilers for the hot bath water. Thus he is now operating in the red.

So Abenomics are not only putting a strain on workers but just about everyone else trying to eke out a living.

Thus the above headline ... Consumer prices rising at fastest pace since late 2008 ... should also include a subtitle that says we are all being clobbered by these rapidly rising prices.

Good grief Abe ... where in the heck did you learn your math??

3 ( +3 / -0 )

Everything, including daily essentials are more expensive. So we have less to spend. Therefore we don't buy as much.

Can someone explain how that helps the economy?

3 ( +3 / -0 )

Amazing how as recently as 1988 there was NO consumption tax in Japan.

3 ( +3 / -0 )

Spin doctors.

According to BBC, consumer prices actually fell 0.1 % when rise in fuel prices are taken out (fuel, water, gas - 6.4% increase in July from a year earlier)

http://www.bbc.co.uk/news/business-23894279

1 ( +2 / -1 )

Japan is still really cheap compared to other parts of the world

It really is not if you travel. Korea is a lot cheaper and other places in Asia are even cheaper than that. Australia should be very cheap with the land/mineral resources = should have a glut of money, but if you have a spend-free gov the taxes and costs will only go up.

Most of this free or low interest money only supports the speculators at the cost of the populace. If anything the interest rate should be much higher to counter the inflation.

0 ( +1 / -1 )

yippee. prices up and salaries down. might influence my wife to leave the place sooner rather than later.

2 ( +2 / -0 )

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