The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.
© 2017 AFPConsumer prices rise for first time in nearly a year
TOKYO©2024 GPlusMedia Inc.
The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.
© 2017 AFP
24 Comments
Login to comment
kibousha
Personally, falling prices is not why I don't make purchases, I don't hold off buying food because prices will come down next month. I don't buy stuffs because I know the economy will crash, I will lose my job, and when it happens, I make sure I have a sizable amount of money to keep me and my family fed until the next boom starts.
if you need to learn something BOJ, learn this. It's not the "falling prices", it's people's outlook for the future that affects the economy.
qwertyjapan
Didn't you folks get the memo? Rising inflation will lift everyone and all companies to economic Heaven, and deflation is a death spiral to Hell.
Cricky
Ahh that extra 2yen I paid boosts the economy for 1month. Meanwhile my wage drops and taxes rise. Beautiful Japan you have done it again.
pacint
Outlook might look bleak, hence consumers will shop more careful and buy the cheaper option.
mr_jgb
The world is going to start a new inflation cycle from a cyclical lows of 35-40 years of deflation. Japan will not be spared; inflation will make a comeback. Two generations of money managers are not exposed to this coming cycle. Havoc and volatility will become much higher from historic lows now. The JGB market will have massive sell-off in due time and Japanese debt fiscal monetary management may collapse. The time bomb is ticking while great complacency in Abe administration is being entrenched. BOJ & MOF will be blamed.
smithinjapan
And in a month when they are showing that sales slowed and pretending to be baffled that people aren't spending more because of high costs they'll be talkign about how they should increase prices higher to because it will somehow increase sales, etc.
itsonlyrocknroll
Separate figures on Friday showed household spending was weak, falling 1.2% year-on-year. That was the 11th consecutive month of decline......Families will not commit to any additional spending, if overall household incomes remains stagnant........There is no evidence of a trickle down effect for SME's. All the billions of so call BOJ stimulus programme incentives are banked gathering dust.
Wakarimasen
Unemployment numbers depend on including all the part time and non contract workers too. note other article that Black Cat can't find staff.
viking68
This is the big question and the right answer, no salary increases. Inflation is not real enough at 0.1% for salaries to increase. Plus, the price increases are the result of increasing import costs, which do not translate into more revenue to spend on salaries.
paulinusa
It's possible some Japanese people might end up missing the deflation years.
Wakarimasen
Premium Friday working already? Agree the economic theory of ppl putting off spending to tomorrow because it will be "cheaper" feels misguided.
MsDelicious
I like neutral-flation. No ups and no downs.
kurisupisu
Who can argue that higher prices aren't a good thing? Who doesn't want to spend spend spend? Why not welcome spending more money so that there is less to save?
After all, everybody wants to have less and less to spend on goods that cost more and more, right?
gokai_wo_maneku
Consumers don't postpone purchases because something might be cheaper later. They postpone because they have no confidence in the future. Will I have a job tomorrow? etc etc etc It's the economy stupid! You listening Abe?
Yubaru
So, is it fair to say then that is the "fresh food" numbers are included then the numbers will be down, again!
Tight jobs market? Unemployment at near record lows?
Who is pulling the wool over whom's eyes here?
Cricky
After years of Abe nomics whoo hoo I can see the befits daily sowing my socks, walking to the station, selling my car? It's a land that is remonisant of Pinokios boys island on the decline. I didn't mention the reduction in wages or tax rises, so wish I was a politician get huge salary, sleep all day and get numerous envelopes that are unknown to me, thank god for stupid staff.
gokai_wo_maneku
The cause and effect relationship is misunderstood. Consumers to not put off purchases because they think prices will fall due to deflation, consumers are afraid about the future and so they don't spend money, and then prices fall. Until the government can fix this mindset, nothing will change. But politicians cannot do this because they are all rich and don't understand the situation of the "commoners".
G.MAL.O.Q
Mr_jgb,
Please enlighten the mere mortals in here on why/how a new inflation cycle is about to start.
And please tell us you've put on the trade for the coming armageddon of hyperinflation (and not for some embarrassingly low nominal)
Otherwise just keep quiet, greater punters than yourself have been wrong since...1994.
fxgai
JT readers are very astute when it comes to the fundamental flaws in the economic theories underpinning the failed policies of central planners. Agree completely.
Consumers want economic growth not price growth. It's not government that grows that economy.
pacint
Hmm, I see the same goods sold at various stores going from affordable to 'you got to be kidding me'.
Shop wisely.
JeffLee
Yes it does, particularly when the private sector chooses to hoard its earnings, constrain wages, and buy back its own stock while raking in record-high profits, then it is indeed up to the government to engage in stimulus spending to make up for sluggish private investment. Doing otherwise would be irresponsible.
By the way, Japanese companies had their most profitable quarter in Oct-Dec. in 30 years. Time for the private sector to step up to the plate.
Noliving
It isn't idiotic, this isn't a line that only the Japan government says. It is a very much an issue that economists across the entire world are afraid of and have research to back it up, this is anecdotal but I know for a fact that I have exhibited this behavior myself, back in late 2014 early 2015 when the price of oil crashed I use to delay refueling my car till the next day because I could get a cheaper price. For example I would normally refuel my car when coming home from work at the gas station that is just a mile away from my house because I had 20 miles left in the tank according to the car computer and my commute one way is 25 miles so I would refuel right then and there, but because I knew that if I waited till the next morning I could save a few pennies per gallon so I waited until the next morning to refuel and it worked for about 2-3 months, I would save around 2-5 pennies per gallon each time by waiting till the next morning.
Ponch
"The world is going to start a new inflation cycle from a cyclical lows of 35-40 years of deflation. Japan will not be spared; inflation will make a comeback. Two generations of money managers are not exposed to this coming cycle. Havoc and volatility will become much higher from historic lows now. The JGB market will have massive sell-off in due time and Japanese debt fiscal monetary management may collapse. The time bomb is ticking while great complacency in Abe administration is being entrenched. BOJ & MOF will be blamed."
yeah, yeah...You can also predict that peak oil is next month, gold will trade at 6,000 but you'll be fine because you've built a bunker and have a shotgun. fearmongering makes you feel smart.