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Japan inflation stays at 7-year high in May

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In the meantime, the "widow maker" trade has been rekindled, with foreign traders betting against Japanese debt in the belief the BOJ's YCC will collapse.

This could be interesting. The "short Japanese debt" crowd always loses this bet. Curious why it thinks it's right this time.

1 ( +4 / -3 )

We have not had any significant inflation since at least 98 and perhaps longer. That's as far back as memory serves.

But I do understand how sudden increases in prices has a jarring effect on workers and especially fixed-income retirees.

I think the BOJ is going to have to raise interest rates before long.

3 ( +3 / -0 )

I think this inflation will peter out soon then the longer term deflationary trend will persist based on the demographic cliff.

1 ( +5 / -4 )

The core consumer price index, which excludes fresh food, jumped 2.1 percent year-on-year in May

Yes, well, what about food?

Actually, food inflation in Japan edged up to the highest seen in over seven years, to a high of 4.1% in May, from 4.0% the previous month. This is the 9th straight month of increases in cost of food, with increases seen in all sectors except for prices of alcoholic beverages, which dropped to -.3%, falling for the eighth straight month.

The annual inflation rate for Japan was 2.5% in May. The 9th straight month of rises in consumer prices. What sectors were included? Food (see above), cost of fuel, light and water charges (14.4%), clothes (0.9%), housing (0.5%), furniture (3.6%), education (0.8% ), culture & recreation (1.7% ), and miscellaneous (1.1%). Those sectors that saw decreases included transport (-0.8%) and medical care (-0.8%), mostly due to government interventions.

Thannks to the Ministry of Internal Affairs & Communications.

3 ( +5 / -2 )

Yes Skeptical, I retain all my receipts from my weekly shop, my personal model shows a average increase of 5%, since January some items have risen over 10% over the past 3 months.

6 ( +6 / -0 )

Just buy bitcoin. And in ten years time you will laugh at ever worrying about inflation.

-9 ( +2 / -11 )

Starving myself is the key.

0 ( +4 / -4 )

All I know is that I have learned to make a great spicy bean curry-lasts a week, and is as cheap as chips

-2 ( +2 / -4 )

The BOJ did, however, said it would "pay due attention" 

... with evil eyes.

-2 ( +0 / -2 )

Tech beats inflation all the time. Just always does things nicer, faster and better.

1 ( +1 / -0 )

Wow a 7 year high.

Canada is at 7.7% the highest since 1983. UK at 9% .

0 ( +0 / -0 )

The ridiculous thing about the BOJ policy…. Look at the US, and other countries who have totally overshot their inflation targets.

They look completely incompetent now - because that’s what their policies have been.

Now look at the BOJ. They can see what I see - other countries with completely blown inflation targets.

Yet, even as they are at 2.1% inflation, they claim to think that they need to continue because the 2% inflation won’t be sustainable.

But…. have they not seen the negative effects of the inflation disaster in other countries?

To think that they - unlike all the other countries with blown inflation targets - will be able magically stabilize inflation at 2% is pure fantasy. They have no such control whatsoever.

And they can’t be so daft, and stupid.

No. Kuroda is making excuses, and buying the government debt no matter what, and counting out time to his retirement next year.

These central planners aren’t thinking about much other than themselves.

-2 ( +0 / -2 )

I think the BOJ is going to have to raise interest rates before long.

Yes, but they're as agile as a glacier. By the time they do act it will be too late for a lot of people.

Just buy bitcoin. And in ten years time you will laugh at ever worrying about inflation.

I'd rather squander my earnings on booze. It's a safer bet than a ponzi scheme

3 ( +3 / -0 )

This could be interesting. The "short Japanese debt" crowd always loses this bet. Curious why it thinks it's right this time.

They short against the US Treasuries indirectly because Japan is the only one buying worthless t-bills for years. Short-sellers may win if Japan drops the T-bills (the US financially abandons Japan), and Americans found alternative buyers such as India and Vietnam.

-4 ( +0 / -4 )

Japanese statisticians have pivoted to China. The real figure for consumer inflation - food, energy, day-to-day spending - is way higher, globally.

1 ( +1 / -0 )

7%+ and rising for trading partners whilst Japan sit at 2.1% is a huge discrepancy. For once Japan appears to be in a much better place than trading partners and is the envy of the world. I don't know why the Japanese media is making such a big deal out of 2.1% (a target for decades....).

USA feds is reportedly going to raise rate by 50 points in the next few cycles, even whilst staring at a recession. I bet Kuroda/Kishida is happy not to be in Biden, Yellen, Powell's shoes right now. If anything Biden is likely to be a one term president.

Meanwhile Japanese export is up, wages tipped to rise, JCB holding interest rate steady which means more certainty for businesses, and a massive retooling (investments in capacity) is underway. What' to worry or whinge about?

-1 ( +0 / -1 )

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