business

Consumer prices at 5-year high, boosting Abe's deflation fight

37 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© 2013 AFP

©2022 GPlusMedia Inc.

37 Comments
Login to comment

Prices are rising.

This is good?

Sales tax is going to increase.

Are we supposed to be pleased?

People are going to tighten their belts and spend less.

So there will be a reduction in income from sales tax.

A lot of smaller businesses will go bankrupt, and the number of unemployed will rise.

But wait until TPP hits.

Then there's going to be total chaos.

Welcome back to the Third World, Japan.

Thank you Mr Abe (sarcasm).

3 ( +7 / -4 )

What awesome news...we all have to pay more for stuff and will pay even more on e the tax increase goes through, whilst the talk of wage increases remains just that...talk. and the masses are supposed to welcome this as positive news? Abenomics under the pretence of fighting inflation is all about helping the corporate buddies and government at the expense of the average Taro. Nothing more nothing less.

3 ( +4 / -1 )

The media have been limiting the use of the word "Abenomics" lately. Presumably they are trying to protect the old rascal from being associated with the results of his policies: rising prices, falling wages, higher taxes for workers and lower taxes for companies etc.

-1 ( +2 / -3 )

There is the first bite out of your disposable income folks. Next will be the sales tax hike. Did anybody get a pay rise from the corporate tax cuts? Of course not! Smoke and mirrors folks!

1 ( +3 / -2 )

MY income has increased by over 25% in the last 12 months thanks to Abenomics. many others are also in the same boat, though of course with winners there will always be loser. I don't think that the small raise in inflation would really have any effect unless someone was on the poverty line and in that case i would advise a new career or adding a part time job to increase spending power.

-6 ( +5 / -11 )

what good is inflation if my wages remain stagnant. these economists are idiots!

3 ( +5 / -2 )

The problem is with the the number of the core-core CPI which is actually falling.

-2 ( +1 / -3 )

@falseflagsteve: Makes me wonder what business you're in, where your income has risen by 25% in only 12 months thanks to Abenomics. Care to share that information? I'm sure those people on the poverty line that you advise to simply 'change the career or add a part-time job' would appreciate the info... Once we're all in a job with double-digit income growth, we will no longer have to worry about rising prices and taxes, will we?

3 ( +5 / -2 )

@rowiko68

My business is exporting and importing to and from Japan, Currently the main focus has shifted to the export side and i have expanded growth in a smaller side that exports only to benefit from the current weakness in the Yen. To be ok in the modern economic climate you must be prepared for any outcome. Things are not as secure as they were and you cannot rely on staying employed or on a pension paying out the promised (or expected amount).

-5 ( +3 / -8 )

Falling prices may sound like a good thing for shoppers, but they are bad for growth because they encourage consumers to put off spending, knowing they will pay less for a product if they wait.

Every single article about Abenomics contains this line of propaganda (along with the two paragraphs that follow it). It's as if it came right off an Abe press release.

Do they really think that people stop buying food, or refuse to heat their homes, because those things are going to be a fraction of a percent cheaper a year from now?

3 ( +4 / -1 )

I put off eating since I know food prices were getting cheaper and cheaper.

1 ( +2 / -1 )

Japan Today appears to be more a government media than any other. Reporting untruths to cover mistakes made by Shinzo Abe and his henchman Kuroda.

0 ( +0 / -0 )

This is a farce, if the price of energy and food is rising, one can hardly be spurred to buy next years groceries today, so all that happens is that we pay more. The price of everything else is still falling, so if the deflationary line that deflation causes people to put off purchases is true (which I doubt), then people will still not inject money into the economy. Moreover, their disposable income is shrinking, which will discourage them further.

2 ( +3 / -1 )

With a short sighted view, deflation looks great because prices are falling; inflation is bad because prices are going up. Japan has been mired in serious contraction because of a decade of deflation caused by the aftermath of one of the most spectacular property bubble crashes in history. No other G7 country has had more than two years of deflation. Deflation means companies have to continue to cut prices which in turn means razor thin profit or no profit at all.This, of course, means no wage increases or even wage decreases. Deflation also means cash is king ie hold cash , don't invest , don't risk because cash increases in value in real terms. Interest rates are also in real terms negative. The only people who benefit in a deflationary spiral are those who have the cash already...yes , the old folks of Japan with millions and billions in the Japan postal savings with zero interest rates.

One year ago, including all the JT posters, everyone were raving on about what a hopeless country Japan was with no growth; no competativeness, essentially a "has been" country and they were all correct because of deflation. Now the incumbent Government has made the first and foremost priority to be a fight against deflation in order for Japan to change. Nothing else matters unless deflation is conquered and there will be collateral damage. Japanese companies are sitting on a record amount of cash with very little debt yet they do not want to increase expenses including wages unless they are assured of a positive change in economic fundamentals which all stem from deflation.

People need to stop expecting a rainbow without the storm..."

--

-1 ( +2 / -3 )

ThonTaddeo, yes it's idiotic to claim this, and is in every article. People do not put off purchases due to very slow falls in prices. People put of purchases of brand new electronic devices because they know prices will plummet within a year, but that is an entirely different thing. No one decides not to buy bread until next year because of 0.5% deflation. To claim so is ridiculous, but everything about Abe is ridiculous. Some parts of the economy obviously benefit from currency manipulation, but everyone else pays more for fuel etc. which leaves them with less to spend. So Abe's plan is to increase taxes, lower disposable incomes and expect an aging and shrinking population to spend more, when most companies will refuse wage increases. It's obvious nonsense. Japan is picking up a little as it recovers from Fukushima and the world economy slowly recovers from Lehmann etc. but it is despite Abe, not because of him. So far he has been incredibly lucky.

1 ( +3 / -2 )

It's always the very few that understand the overall negative impact of deflationary spiral Japan has gone through. As randomman put it, it's a vicious cycle of low prices, low margins, lower wages, lower prices, lower margins, and even lower wages. Easing the monetary policy to encourage borrowing, investing, and eventually spending whether it be artificial is the only solution.

-7 ( +1 / -8 )

nigelboySep. 28, 2013 - 01:19AM JST

Easing the monetary policy to encourage borrowing, investing, and eventually spending whether it be artificial is the only solution

That's what you have been doing for the past two decades and failed. Japan needs economic infrastructure reforms. Go back to the basic principal of macro economics for serious review.

-2 ( +4 / -6 )

That's what you have been doing for the past two decades and failed. Japan needs economic infrastructure reforms. Go back to the basic principal of macro economics for serious review.

Not in this scale. And yet, it still doesn't come close to FRB level after Lehman shock.

0 ( +5 / -5 )

Not in this scale. And yet, it still doesn't come close to FRB level after Lehman shock.

US currency is a reserve currency and US economy is a bedrock foundation of global economy. Japan did not get into too much trouble as US is that Japanese investment bankers are not savvy as well as US per Aso. I truly agree with Aso. You should be thankful for that. Smile and be happy!!

-5 ( +0 / -5 )

I have zero idea how poor families are managing. I went grocery shopping the other day and some veggies were double the price they were this time last year. The cost of food is ridiculous and then Abe wants to put more tax on them? The fat cats really don't get it, do they?

Oh myself nor my husband as seen a raise. Anyone else because Steve?

-4 ( +2 / -6 )

@tmarie

Were you referring to me? Better not to sit moaning about prices and do something about it like i have. We are all living in a country the wants many things from abroad and has great stuff that people want. In fact people from abroad wnat many things Japanese and are prepared to pay good prices in many cases. What sort of things do people want? Food stuffs and snacks are popular, video games, figures, models and stuff like that. These things can easily be sold and a minimum amount of work is required. Social networking sites, eBay and then possibly a website after a few months. Little money is needed to set up. A few hours a week research is needed, this can be done while commuting if you have a smartphone. Even if someone started small scale and sold say 10 things for a 1,000 Yen profit a week, that would bring in over 40,000 Yen a week. Many people will say they lack rime to do this kind of things which is not true, do like me, don't watch the telly, hardly ever go to drinking holes. If you don't like not having enough money it can be made so easily in Japan, but you need to make an effort, not sit moaning and stop envying others success.

-3 ( +4 / -7 )

@tmarie;

Nah, just gave some advice on how to make money in Japan that may help someone who needs some extra cash. People need to help themselves and if able bodied most can. It is better to show people what can be done especially using modern tech. I of course have concern for everyone, i have been poor but worked my way out of it. The average person spends 20 hours a week watching tv , if they spent 10 hours of that making money at something they have an interest in, their lives could be much better with extra cash in their pockets. The internet makes almost anything possible, whether offering a service, a product or whatever. Times are hard for some but there is no excuse these days for those with spare time to do nothing about it.

Can you give any advice to people as well please tmaeie?

-3 ( +2 / -5 )

I don't need advice - doing well enough on my own but that doesn't mean that I can't discuss the rising prices and the fact that Abe's little 'I will encourage companies to give their workers raises" isn't laughable.

Advice? Sure but I don't think anyone on here is looking for advice Steve, they're commenting on the price of things increasing.

-7 ( +1 / -8 )

@tmarie

That's what i thought you would say. Advice will always be welcome for some and i have been able to assist a few with my knowledge over the last few years.

I would think that the price of veg would not be such a concern for those financially secure. At one time i would worry about things like that but when income level reaches a certain level, those things no longer come into ones mind.This does not mean being wasteful or being high end marked up stuff for me anyway.

There are plenty of choices and opportunities for any foreigner to do ok under the current . I recommend to anyone to use Abenomics to your advantage. Yes, inflation may be eating into your disposable income but the current exchange rate is a good and easy way to raise so much needed cash. You may enjoy it and it could even become a new career and better life.

-6 ( +1 / -7 )

In the end people will just have less to spend IF they feel like spending at all. You can lead an economic horse to water but you just can't make it...

-2 ( +0 / -2 )

Well I like saving money and sorry but when prices are double what they were last year, poor or wealthy, why shouldn't people be concerned? If you like to waste your money, great. I don't.

I have a career and a life that I love. Perhaps someone else might benefit from your "advice" but frankly, not interested.

-7 ( +1 / -8 )

@tmarie

The problem is that you seem to be under the illusion that prices have doubled, they haven't. There have been slight increases, some things have increased more than others and some prices have fallen.Maybe you should shop at a different place, farmers markets are usually much cheaper than supermarkets and the produce usually fresher. If you buy quite a lot from the same vendor they will often give you freebies as "service", ideal for the thrifty shoppers like yourself. I also like to and do save, yet i am still in a position to not worry about grocery prices. No professional should need be concerned about such things unless under paid.

When i gave advice it was on this public forum not a personal message between us so the advice was not just intended for you.

As i said in previous posts, if people do not like the effects of Abenomics, use it to your advantage. Anyone can and i hope they do.

-6 ( +2 / -8 )

Classic. You think you know my shopping habits and where I shop? God lord. Prices of some things HAVE doubled in my area.

I am not worrying for myself personally. I am worried about poor families and their kids. It is a shame you don't seem to be able to understand that.

-8 ( +1 / -9 )

@tmarie

Was just trying to be helpful as the price increases are obviously causing you some stress..

I also worry about these people but i encourage them to do something about it. A lot of poorer people need help and advice ,many need to be more motivated as being financially strapped can be depressing and cause problems within the family unit. Japan has many options for people to make money and i so try my best to help people utilise their skills.

One of the problems of modern society in all developed countries are the poor education systems that pump out "compliant" workers that are reliant on society rather than those that can survive by self employment means. This is why when many people are faced with financial problems they will moan and groan about it and the time spent doing that could be used creatively to earn more income.

-4 ( +2 / -6 )

Prices of some things HAVE doubled in my area.

Like what? Yamazaki bread increased their prices by about 10 yen. Most "oil" products such as mayonnaise have gone up, but around 5%. One thing that has gone up is the price of tomatoes, around 50%. But the price of vegetables depends mainly on weather, not economics. If you want, there are plenty of cheaper supermarkets, like Big A, OK super, Cousin, etc.

4 ( +6 / -2 )

Tomatos, eggplant, cucumbers, daikon and cabbage when I am right now is easily double the price.

-6 ( +3 / -9 )

tmarieSep. 28, 2013 - 06:48PM JST

Abenomics is an economic thief targeting a middle class Japanese.

0 ( +2 / -2 )

Global, agree! Not sure I have been voted down for pointing out the increase of prices and how poor people must be suffer due to it!

-8 ( +1 / -9 )

@tmarie

Think it is more likely down to the way you reply to other posters.

-3 ( +0 / -3 )

Higher inflation is only a positive for the economy if it is driven by higher economic activity, not just by higher input prices - which is exactly what is happening in Japan right now.

Without wage inflation, Abenomics is dead in the water: http://nipponmarketblog.wordpress.com/2013/09/25/crucial-japanese-wage-inflation-remains-elusive/

1 ( +2 / -1 )

US currency is a reserve currency and US economy is a bedrock foundation of global economy. Japan did not get into too much trouble as US is that Japanese investment bankers are not savvy as well as US per Aso. I truly agree with Aso. You should be thankful for that. Smile and be happy!!

You make no sense once again. No matter how you slice and dice it, it's essentially pumping money into the financial sector to stimulate growth. Japan did not participate this during the aftermath of Lehman shock, one of which resulted in the appreciation of the yen.

0 ( +2 / -2 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites