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Consumer prices in Japan fall for 1st time in 4 years in 2016

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As long as a large percentage of the workforce is doing temporary or part-time work, consumer spending will remain weak. People don't spend money when there is no stability in their lives.

6 ( +7 / -1 )

There has never been any data proving consumers delay purchases or companies are discouraged from making capital investments because of non-rising prices.

The banker class love that writers have been programmed to write this all the time.

1 ( +3 / -2 )

The BoJ had hoped that consumers would spend more if prices were rising

How does that work? I thought it was the opposite. If I keep earning the same and prices keep rising, shouldn't I save as much as possible or buy only the necessary ?

5 ( +5 / -0 )

And it always pisses me off when they exclude "volatile commodities" like fresh food when that is one of the bigger expenses a family has. I know that the prices fluctuate depending on the weather etc. but I'm sure in this day and age of super computers the numbers could be factored in. I agree with the other posters, the more prices increase, the less people will spend. The only point of reference these sold called experts are thinking of is whenever a sales/consumption tax is announced, people do go out and buy more. But I don't think you can compare the two situations. One is a definite increase, while the other is theoretical until it really happens.

1 ( +2 / -1 )

I often wonder if getting more women in the workforce would help increase spending

I would argue that dual income families would be more likely to increase spending, especially if working mothers are given more opportunities to work career track jobs that actually pay a decent salary

And by this, of course I mean jobs that are both career-oriented, but also allow people to go home at a reasonable hour

Wake up, I must be dreaming...

3 ( +3 / -0 )

"The BoJ had hoped that consumers would spend more if prices were rising"

I took my six-year-old nephew to an old-school candy shop the other day. He wanted to buy some of those Doraemon cheese sticks (or tarako flavour). The total came to something like 320 yen. He had 500 that his mother had given to him (I of course was going to pay for it anyway). He seemed hesitant to part with it, and I said, "If you give them that you'll get change, you know" and he nodded. I joked, "Unless you want to pay 500 for them instead!" He looked at me like I was an idiot and could barely even shake his head. I said I was joking (as he didn't seem sure), told him to put his money back in his pocket, and bought the sticks and other stuff. You know what, he was very happy I bought them for him and he could keep the money.

Lesson being, even six-year-olds aren't dumb enough to want to buy something if it gets more expensive, but are very happy to have it for less (or free, in this case). I was joking -- the BOJ, on the other hand, is actually being serious. TIJ.

1 ( +4 / -3 )

And a lot of the packaged food keeps shrinking. I swear the high-end ice cream cups have shrunk.

3 ( +3 / -0 )

FizzBit

not just the ice-cream cups.

Look at cheese and other dairy products.

Look at "bentos", look anywhere.

But I'm sure there is no "shrinkage" concerning Mr Abe's (and buddies') wallet.

5 ( +6 / -1 )

with falling population, isn't it natural that consumption should fall? Why econonomists and polititians are blindly infatuated with growth, no matter what the cost?

4 ( +5 / -1 )

smh.

No one (govt and corporate) has the guts to break the vicious circle of falling/stagnating prices and wages that's why the country has been in a chicken and egg situation for so long. If you want ppl to spend more, pay them more, inflation will follow.

For whatever reason Abe's still dreaming that one day ppl will start spending again (despite earning less or the same if they're lucky) and kick-start growth! It won't happen, ppl aren't that dumb.

0 ( +1 / -1 )

For whatever reason Abe's still dreaming that one day ppl will start spending again (despite earning less or the same if they're lucky) and kick-start growth! It won't happen, ppl aren't that dumb.

meantime, population is declining, meaning people are dying but not buying.

1 ( +1 / -0 )

Deflation can also discourage spending by consumers, who might postpone purchases until prices drop further or save money, creating further pressure on businesses.

Been seeing this since I came here. Ages ago.

The BoJ had hoped that consumers would spend more if prices were rising, persuading firms to expand operations and getting the economy humming.

This reminds me of the let them eat cake syndrome. Hope? What a disgusting joke!!

1 ( +1 / -0 )

So a "vicious circle" of inflation is better than a "vicious circle" of deflaton?

0 ( +2 / -2 )

This is great for people whose incomes have fallen.

-2 ( +0 / -2 )

The only deflated prices are supermarket items all discounted heavily at around 7pm at night because they can't sell. Best time to buy later at night to get cheaper food. A couple of years ago, you would never see bargain bins at stores. Another commenter said that items are being packaged smaller. I have Nescafe coffee jars from a few years ago which held much more than current jars at around the same price.

People can't spend money when they don't have it. Wages are far too low for most workers. Needs to be around 1,500 yen per hour. Latest statistics on electricity charges around the world show Japan as second highest to Australia. But, people are also on gas as well whilst some other countries use electricity only. Add the cost of gas and electricity in Japan and see how much your energy bill is. Just an added note- Australia wages are higher than Japan. New Zealand minimum wage is also higher than Japan, yet energy prices are one of the lowest in the world. .

1 ( +2 / -1 )

If I think the price of something I want / need is going to increase on April 1, I will buy it before then. On this point the BOJ Oyaji are correct.

However, if I think the price of something I want / need is going to MAYBE increase sometime in the future (and what consumer assumes the price will decrease?) I will wait until I really need / want it. Or wait for a sale. I won't rush out to buy it because maybe sometime in the future the price will increase. Do the BOJ oyaji not live in this world?

1 ( +1 / -0 )

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