Japan inflation falls to BOJ target of 2%

The BOJ seems to have got it right, as it predicted a while back that the then-inflation was temporary. So let's pray even harder that Japan's stingy, greedy and super-wealthy corporations agree to give decent raises this spring.

I don't understand all that info much, but I know prices have gone up by a lot recently.

Instead, it wants to see more evidence of a "virtuous cycle" of price increases fueled by demand and higher wages.

When will they stop publicizing this falsehood elevating this voodoo economics by overpaid suits? In the face of all empirical evidence to the contrary.

This monetary policy has just been an extra added subsidy to the ultra wealthy propertied class, in Japan and elsewhere.

https://www.spectator.co.uk/article/qe-the-ultimate-subsidy-for-the-rich/

Japan inflation falls to BOJ target of 2%

Japan was the only major economy where income failed to rise in real terms in 2023, according to the Nikkei. Inflation-adjusted real wages have now fallen in Japan for 22 consecutive months. Was that the target?

Their plan of doing absolutely nothing and hoping everything fixes itself worked omce again. Gotta love them Japanese Economists.

The dip in the core consumer price index (CPI), which does not include volatile fresh food prices, was slightly less pronounced than expected, with economists polled by Bloomberg predicting 1.9 percent.

….

Those Bloomberg economists haven’t been shopping in Japan recently have they?

Anything produced in Japan is around double the comparable import.

Also, it is extremely rare to see imported produce at any Japanese supermarket other than Costco.

Everyday expenses of fuel and food are becoming higher and the yen/dollar is forecast to hit 154!

Still temperatures are 2-3 degrees at night and early morning ie still winter at the end of February.

The cost of living is high and salaries low and nothing is set to change.

The food imports I mention are fruit and vegetables largely.

Fish is mainly sourced off Japan whereas meat is a foreign import and Japanese sourced meat is of course much more expensive.

It’s falling because normal workers don’t have any money left to live after taxes are taken out. The birth rate is going to go further down, mark my words..

Purchasing power has decreased 50% in 10 years!

50% not 2%!

wages have only increased for a select group, maybe 10% of the population

meanwhile fuel, food, energy have shot up 20-30%

stop the 2% BS talk please

Japan inflation falls to BOJ target of 2%

Not according to my wallet at the supermarket, or when I fill my gas tank!

wages have only increased for a select group, maybe 10% of the population

Me thinks your guesstimate is far too high!

Interesting BOJ ignores massive Govt. energy purchases that are consumer price subsidies and food inflation, which is the worst category of inflation. How convenient!

Big elephant in room, Yen at 150$, that'll flow thru as inflation as economy as Yen weakness continues, due to sticky US inflation, massive Govt. spending, increasing money supply and thus high rates.

Inflation-adjusted real wages have now fallen in Japan for 22 consecutive months. Was that the target?

Now you see what the BOJ's plan (and really the plan of most of the world's central banks) has been all along, including the relentless propaganda about how inflation is somehow good for the average person. Inflation is good for the top 5-10% who get access to freshly-printed money before prices rise, and who can borrow now knowing that they'll be able to pay their loans back in devalued money later.

For regular wage earners hoping to save for the future and who are at the mercy of an always-difficult job market when it comes to wages, inflation is slow-motion impoverishment. Or, as we've seen in the past three years, somewhat less slow impoverishment.

Does that mean they don't need to raise interest rates then?

I think that, during the pandemic, when the economy was effectively frozen, things got reset in a way that benefited the U.S. it’s going to take time for the global economy to return to some kind of normal status. Things like prices are not that important by themselves. It’s really about quality of life and security.

More LDP propaganda I see!!

2% feels far too low. Energy bills and food have gone up much more than that. We bought one recently, so I've been looking, but second hand cars are still expensive too. Way more than pre Covid.

Clothes are probably still cheap but thats fast fashion for you. When manufacturing processes improve and/or are offshored, prices should actually go down, as has happened with PCs and flat screen tvs.

ThonTaddeoToday  08:27 am JST

Inflation-adjusted real wages have now fallen in Japan for 22 consecutive months. Was that the target?

Now you see what the BOJ's plan (and really the plan of most of the world's central banks) has been all along, including the relentless propaganda about how inflation is somehow good for the average person. Inflation is good for the top 5-10% who get access to freshly-printed money before prices rise, and who can borrow now knowing that they'll be able to pay their loans back in devalued money later.

Exactly. Massive injection of liquidity makes sense when there is a serious crisis to avoid falling into a depression, as was seen in the 1930s. However, when maintained indefinitely, as Japan has been doing, it tends to enrich the very wealthy at the expense of the average citizen.

"Moreover, Governor (Kazuo) Ueda mentioned last week that he believes that the Japanese economy is in a virtuous cycle where inflation will rise and wage growth and employment will strengthen," ING added.

He's right in a sense that inflation will inevitably rise with other economies, employment will strengthen because of a shrinking population and increased demand for labor, but wage growth is a bold prediction. Seems like many are fine with their lives in the interviews below despite what would be considered close to poverty wages in the US, maybe we shouldn't tip things to one side and continue to keep things balanced?

https://www.youtube.com/watch?v=Nwg8ZxycA1s

https://www.youtube.com/watch?v=C0FSpSe50m0

""Instead, it wants to see more evidence of a "virtuous cycle" of price increases fueled by demand and higher wages.""

Keep on dreaming.

2% feels far too low. Energy bills and food have gone up much more than that. 

Exactly, because Japan’s CPI excludes fresh food and energy, this 2% likely doesn’t accurately capture actual hardship.

Japan’s CPI excludes fresh food and energy

The "Core CPI" referred to in this article includes energy. You may be thinking about the "Core-Core CPI" which excludes energy. Yes, the terminology is confusing.

I must have been very unlucky with what I tend to buy, most things are up 10 - 50% compared to a year ago.

I’m hoping the prices have gone up and won’t get pushed up every year. Year on year just so the government can allow inflation to whittle away at the national debt. Which is basically the real reason governments want some controlled inflation.

as western inflation eases I hope japans inflation falls even further. Giving some relief to consumers. Inflation only really hurts consumers. Or so the government’s keep telling us.

2% LOL, the new Japanese joke!!!

next month will be 0.02% right...

Beer has gotten cheaper. My rent has not changed for more than 10 years.

Japan inflation falls to BOJ target of 2%

Wasn't this the target of Abenomics TEN YEARS AGO??

Abe is gone and Kuroda is out and BOJ is still holding on to this policy. Stubborn isn't even the word to describe it.

Little by little..

Well done Japan..

Buying power in Japan is dropping : -30% between 2003 and 2022. 2023 shall be no different if not even worse trend.

https://www.google.com/amp/knoema.com/atlas/Japan/topics/Economy/Inflation-and-Prices/Purchasing-power-parity%3fmode=amp

I see no coming change to this situation.

Do companies propose higher wages if you change company for same job ?

Can anyone say so because I have not seen this happening with all the people I know.

I bet that BOJ will not change its policy, or by a small margin only just to pretend working well.

Yes, the terminology is confusing.

Welcome to Japan! Where the phrase "If you can't dazzle them with your brilliance, baffle'em with your bull!" fits to a "T"

Visited my favorite chain sushi restaurants last week, Kantaro sushi and I can tell you that the prices have risen by at least 30% since 2020. The place is usually full on weekends and holidays, but not on this day. The prices are just too high for many people! 2% my foot!

Visited my favorite chain sushi restaurants last week, Kantaro sushi and I can tell you that the prices have risen by at least 30% since 2020.

Fascinating. Now do single-ply toilet paper since 2013!

Little by little.. 

Well done Japan..

Yeah, great job at decimating the middle class in a nation that was so proud of its egalitarian principles.

The rich/poor divide is becoming more and more evident.