business

Japan inflation stuck at 0.7% in May, way below target

22 Comments
By Behrouz Mehri

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22 Comments
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No pay raises, higher taxes, unstable hakken jobs, and a massive wave of retirees on small pensions means no one can afford to pay more!

13 ( +13 / -0 )

If Japan failed to fudge the books for May I wonder what the real figures were.

7 ( +8 / -1 )

This is from the start of Abenomics to increase higher inflation, LDP Abe and Bank Of Japan director managed to "better economy" in Japan. Did it take a good result for citizen get higher wages? Abenomics is accelerating middle class to poverty as inflation creates higher prices with no changes in wages to citizens. As much as the price of products going higher to companies get profits and companies of no change the workers wages. What does it serve?

7 ( +7 / -0 )

5 years + of happy Abonomics and here we are...where we started. Obviously, he has fled overseas so no comments from Shinzo. No ones wage has gone up, companies have trouble hiring because people would rather eat ¥100 cup noodles then be debased for ¥800 yen an hour? Sometimes an enema is required at a political level, please Shinzo bring back a guillotine from France, we all can eat cake watching the results.

7 ( +7 / -0 )

But hey, they just rehired Kuroda saying how great a job he's doing with his... what... 2016 target now that it's 2018.

8 ( +9 / -1 )

Abe has already announced that he will go ahead with the tax hike. When that happens, the inflation numbers are going to dip into the negatives, household spending will drop more and Japan will be in a recession.

8 ( +9 / -1 )

If Japan failed to fudge the books for May I wonder what the real figures were.

Such a good point!

5 ( +5 / -0 )

My salary is in stagnant not prices! The LDP is the party of wealthy class. While I can shop in the commissary, American food makes me fat. If I want fresh bread, fruits, milt, etc. I have to shop in Japanese stores.

-4 ( +1 / -5 )

People feel they are living in a Utopia Japan had not experienced in their history and do not want to change their lives. Inflation may be necessary for corporations to grow their businesses but it will make their life harder if prices are hiked. They are grateful and content with their life today. They can go to hospitals almost free and the retired are receiving pensions more than they paid. They do not want changes.

1 ( +2 / -1 )

No pay raises, higher taxes, unstable hakken jobs, and a massive wave of retirees on small pensions means no one can afford to pay more!

Indeed...no better time to raise a sales tax according to the twisted logic of LDP blue bloods and their top bureuacrat minions,  living in a comfortable taxpayer funded bubble , not giving a toss about the average Taro and Keiko,s struggles. Next, they will all be puzzled once again, why the birthrate is not increasing.

11 ( +11 / -0 )

Ha ha puzzlingly about birth rates they are puzzled about these humans that don't react as told. Time for some yoga before collecting my sheafs of gold.

3 ( +3 / -0 )

In Japan, demand is basically weak. We need big spenders but do not have people who are often found in America or in the middle east who spend huge money for their luxurious lives and for women they love.

2 ( +2 / -0 )

They need inflation to pay off the terrible debt the government has. Inflation is a hidden tax that hits the poorest that hardest. But few people complain.

If a politician added 15% to the consumption tax across the board, he/she would be voted out of office. However, 14% inflation will accomplish the same thing and only cause a little grumbling.

2 ( +3 / -1 )

Modern economics' obsession with inflation is ridiculous and unhealthy.  Implies that social and economic good is only improving when expanding.  Leads to all sorts of adverse outcomes.  To me 0.7% is fine and reflects declining population, mature economy etc etc.  If not for the massive artificial stimulus being applied by Abenomics this number woulf be where it should be given the above, somewhere around -2%.....

2 ( +2 / -0 )

Abenomics is accelerating middle class to poverty as inflation creates higher prices with no changes in wages to citizens.

That's the fault of employers, not Abe. Abe doesn't pay wages, employers do. They've been raking in record high profits but refuse to share the higher earnings with their workers.

0 ( +1 / -1 )

To JeffLee:

"That's the fault of employers, not Abe." - Well, that's not the point. Abenomics is LDP Abe's policy to companies/employers get profits and compensate the workers, If it's not happening the employers serves to Abe's reputation the cronies, don't you think? It's tricky the inflation isn't going as government aims. And automatically, you know why.

1 ( +2 / -1 )

They just keep reflecting and comparing to the boom 80’s and Just can’t let it go. That’s nearly 40 years ago and the markets of mass-produced products no longer belong to japan and never will again. Japan’s economy will never recover while these old folks have their heads stuck in delusions of the past. Japan needs new and radical economic strategies to rebuild its economy and it cannot he rebuilt through international markets. It must be rebuilt domestically, but that cannot happen because of the wasteful practices of both the government and big business. As strange as it may seem, Japan needs to increase unemployment. They need to thin out all these driftwood managers from companies and increase the productivity of the rest. By doing this, the ridiculously high prices of Japanese goods and services will come down by cutting back on overhead costs, thus increasing spending.

4 ( +4 / -0 )

Commanteer said,

If a politician added 15% to the consumption tax across the board, he/she would be voted out of office. However, 14% inflation will accomplish the same thing and only cause a little grumbling.-------------------------------------------------------------

In New Zealand, their consumption type tax is 15%, but everyone is eligible for pension without having to pay anything in , Hospitals are free, no additional car purchasing tax with added consumption tax like Japan, food sold by the kg and not per each like Japan.

You see, people would not mind paying more consumption tax if they were freed from all the additional tax burdens like health Insurance and pension payments and other non consumption taxes. The Gov. should return more to the Japanese people who pay taxes.

6 ( +6 / -0 )

20% VAT here.

And there is higher in Europe.

Nothing to complain about excpet that this money will go to the elderly who have been privileged during golden years without thinking about savings...

1 ( +1 / -0 )

You see, people would not mind paying more consumption tax if they were freed from all the additional tax burdens. The Gov. should return more to the Japanese people who pay taxes.

I agree, but governments have a tendency to overpromise and overspend. And it often doesn't come to a head for 20 or 30 years. So the first couple of generations have a great time, the third gets stuck with the bill.

Smaller countries seem to have a better time of it. But at least a consumption tax is an honest and transparent tax, whereas inflation is an underhanded way of getting out of government debt.

1 ( +1 / -0 )

My bucho told me "you are lucky to have a job! quit complaining and work harder". He overheard a remark whispered to my coworker. If he had understood it, he would of said something different. At least the EU salaries go up unlike Japan! This increase in tax is going to hit my bottom line! So instead of buying more, people will buy less. Salaries will drop causing people to buy less. Then add in the Trump tariffs and workers will be laid off as well feeding the cycle of recession. The cycle continue and Japan will be in recession again.

0 ( +0 / -0 )

@JonathanPrin

At least VAT is selectively added to goods.In the UK, all goods in Japan are hit with the same rate effectively leading to a tax on children and education.

Also, the already astronomical price of food is further raised by it!

Truly unfathomable!

0 ( +0 / -0 )

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