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Japan reports inflation hit 4%; 41-year high in December

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“It’s a matter of time before prices will head downward, as much is due to the cheap yen and the high costs of oil, coal and natural gas,” he said.

I just can't understand how he can make this statement. Since energy and fresh food prices are not included in the inflation rate, and all these companies are continuing to raise prices, how will the prices head downward? You never see prices fall. sure they may put an item on sale, but once a price goes up it rarely comes down. Or we will continue to see more shrinkflation where producers keep prices the same but cut the size of the product.

12 ( +15 / -3 )

Anyone who goes shopping here for daily goods can see that prices have risen by probably 10-15% over that last year. Some even higher.

Saying that its 4% is rubbish.

12 ( +14 / -2 )

Yeah right,

Like things have only gone up 4%.

Cheese is up 50%.

Coffee is up big time.

Heating bills are through the roof

Factor in the rising costs of fresh food and fuel like most developed countries do and the rate is around 10%

10 ( +19 / -9 )

hiking interest rates doesn't seem like a great idea

Sure, leave the policy rate at -0.1% then.

How about stop printing trillions of yen each year (or month now, I should say) to buy all the JGBs though?

Does printing trillions and trillions of yen do good things for the price stability goal?

9 ( +11 / -2 )

Time for a new government. Opposition party wake up, please!

4 ( +9 / -5 )

@wallace

Transportation on JR increased several months ago with the cessation of the 11 tickets for ten deal.

People are being forced to buy electronic passes instead of tickets.

4 ( +6 / -2 )

@ Jeff lee

Japan's price rises are still relatively modest, so hiking interest rates doesn't seem like a great idea.

Do you remember US and Europe? They were both telling us inflation is transitory and now it is really hard for them to get it back under control. Kuroda is doing the same telling us that inflation will be back to 1.7 % in fiscal 2023. Why can’t he learn from other countries and have a forward thinking.Too stubborn and afraid to lose face I guess.

Can’t wait to see him out!

3 ( +9 / -6 )

I have been here for 30 years.

Transportation in Japan is so expensive too with no discount whatsoever! In Europe you get discounted tickets (even half price) all the time this is the norm.

That is not correct. Transport in the UK for example is much more expensive. There are many train discount tickets.

Where in Europe are 50GB of data and unlimited calls?

3 ( +7 / -4 )

Energy bills have been skyrocketing in Japan. If you live somewhere subzero, you'll be paying loads more for whatever you use for heating. Electricity is currently high with surcharges, but they will be made permanent as big price rises from April. Mostly companies are 30%+ !!!

https://news.yahoo.co.jp/articles/d18cdfa7321d8f621b48a29297f2d1694d20d429

3 ( +4 / -1 )

So, time to stop the free money from the BOJ. But wait, they decided not to, so inflation will probably rise even more?

2 ( +6 / -4 )

kurisupisu

you can buy cheaper train tickets after 10 am. You can also buy one pass. We buy the Sanyo line daily pass for ¥1400 which allows for unlimited travel on that line. Usually, we do that to visit Kobe. JR charges ¥1000 which is still cheap.

Japanese trains are much better than any in Europe.

2 ( +3 / -1 )

Hard, really? US CPI was 9.1% June, and last month was 6.5%. Gas was 5 bucks a gallon in the spring, now $3.40. There is a definite deceleration trend. 

Facts over narratives

So yes CPI at 6.5% is down… but only 300% higher than the 2% inflation target. And it is down because the US authorities, albeit late to the game, aggressively enacted measures that are tightening monetary conditions, not because it was transitory. They threw out that narrative when the facts showed them inflation wasn’t transitory.

While in japan, the keep printing trillions of yen.

2 ( +7 / -5 )

excluding fresh food, rose 2.3% in 2022 from the year before, the highest in 31 years, the ministry said.

That rate is still relatively low, compared to some other nations,

other nations include food in their calculations so that alone makes you suspicious about the actual comparison and real rate.

incomes in Japan have generally stagnated. Where as in other countries wages have risen so any comparison to other countries is not giving a true picture. Quality of life would be a better indicator and Japan is less than No3 on that one.

1 ( +14 / -13 )

Good!?? may be , if so then lets start seeing WAGE increases to keep up. I doubt very much that it will happen, so let's wait and see what happens this spring!!!!!

1 ( +5 / -4 )

There are many ticket reductions for trains. Mobile phone data and calls are cheaper than ever.

1 ( +6 / -5 )

kurisupisuToday  09:34 am JST

When I headed out late to the local grocery store to get a couple of cakes for a celebration, I noticed masses of people just waiting and waiting for the food to get discounted.

It’s the modern day soup kitchen reinvented

Soup Kitchen lines were for free meals for the poor and destitute.

Those people in line at a cake store are paying customers eager to buy some SNS trending pastries at a discount. Frugality and destitution are not synonymous.

1 ( +7 / -6 )

4%? Things I buy frequently are now twice the price. I thought Gyomu Supermarket was the go-to cheap store and now I am exploring my options.

1 ( +1 / -0 )

Japan, the world’s third-largest economy, has been fending off deflation, or chronically falling prices, for decades.

Again with this "Japan has been battling deflation, which is BAD BAD BAD" nonsense from the journalists.

Back when we had deflation, it was on the order of 0.1% per year. Even if we went back to that right now, it would take roughly 40 years of such very mild decreases just to get back to last year's prices! (1.041*0.999^40) Four decades of products getting just slightly cheaper and the working man having it just a little easier... wiped out in a single year of BOJ money printing!

1 ( +1 / -0 )

Japan reports inflation hit 4%; 41-year high in December

4% or more it's new capitalism

https://www.japantimes.co.jp/news/2022/10/12/business/kishida-new-capitalism-no-progress/

0 ( +7 / -7 )

mammamia

wallace

in italy and the rest of europe just check, probably UK is the exception especially after shooting themselves on their own balls getting out of the EU free market system..

I did check but I didn't find any.

0 ( +2 / -2 )

mammamia

wallace

https://www.iliad.it/

10 Euro is a good price.

0 ( +1 / -1 )

Theater and pretending as usual, no problems here!

Prices, wages, mental health - no problems here!

0 ( +4 / -4 )

@JeffLee

Hard, really? US CPI was 9.1% June, and last month was 6.5%. Gas was 5 bucks a gallon in the spring, now $3.40. There is a definite deceleration trend.

As for the EU, Russian energy dependence (thanks, Merkel) is a big driver: 9.1 percent last month. However, that was down from November, and further down from the peak in Oct.

Sorry I was not specific enough.

I am not talking about headline inflation which of course is lower since the price of oil has been falling rapidly. I am talking about core inflation which is the important one. In US it is up 5.96% against 6.28 % in November. So, not much change. As for Europe it is up 5.20 % versus 5 % in November.

This is why Powell and Lagarde remain very hawkish.

0 ( +1 / -1 )

4% are you kidding me?

Next they'll be saying Doraemon is a real cat

0 ( +2 / -2 )

Ouch

-1 ( +0 / -1 )

Massive price increases!

4 % ?!

That's an outright lie.

-1 ( +3 / -4 )

MarkX: "“It’s a matter of time before prices will head downward, as much is due to the cheap yen and the high costs of oil, coal and natural gas,” he said."

This comment does not mean prices of products consumers buy, save maybe gas, but in my mind refers more to imports of raw materials. Once stores and companies raise prices on their products, they never, ever lower them, again save gas and electric. Bottles of tea that are now smaller but cost from ¥160 are not going to drop to ¥140. Sizes of bags of potato chips or chocolates aren't going to increase in volume and costs go down -- companies will just make more profits because what they say drove them to hike prices was the cost of materials to make the products. THOSE costs will go down, but not the cost of the finished product at all. Restaurants might decide to lower costs again, but I doubt that. Companies will use a myriad of excuses, including, "We realize prices for materials have gone down, but they may well go up again in the near future. So, rather than have convenience stores go through and change their price tagging and registers again in decreasing prices, we will keep the current prices in lieu of raising them again if there is a cost increase." Then, they will increase them again if there is a cost increase.

There is no shortage of greed, that's for sure.

-3 ( +5 / -8 )

Companies cannot help to increase price due to Cogs and energy price hike. That’s understandable.

As a businessperson, we need to invest in ourselves to contribute more and earn more.

All the companies should allow employees to do side jobs.

-3 ( +0 / -3 )

@rakuraku

Do you remember US and Europe? They were both telling us inflation is transitory and now it is really hard for them to get it back under control.

Hard, really? US CPI was 9.1% June, and last month was 6.5%. Gas was 5 bucks a gallon in the spring, now $3.40. There is a definite deceleration trend.

As for the EU, Russian energy dependence (thanks, Merkel) is a big driver: 9.1 percent last month. However, that was down from November, and further down from the peak in Oct.

Facts over narratives

-5 ( +1 / -6 )

The real figure is likely to be double the "official" figure.

-7 ( +8 / -15 )

When I headed out late to the local grocery store to get a couple of cakes for a celebration, I noticed masses of people just waiting and waiting for the food to get discounted.

It’s the modern day soup kitchen reinvented

-9 ( +12 / -21 )

Very low inflation compared to the rest of the world in this global economic crisis... Very well done Japan!!...

-10 ( +0 / -10 )

other nations include food in their calculation

So does Japan. The 4% headline figure includes food. The 2.3% figure is core inflation, excluding food. Japan's price rises are still relatively modest, so hiking interest rates doesn't seem like a great idea.

-11 ( +7 / -18 )

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