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Japan's consumer prices up 1.3% year-on-year in March

14 Comments

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14 Comments
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Hmmmm. hope they can control it once it gets started.

1 ( +1 / -0 )

Don't forget to stick another 3% on that for the sales tax increase. Let's hope Japan joins the TPP soon to give is consumers a break from over-inflated and fixed prices.

3 ( +4 / -1 )

It is 'forced' inflation so naturally it has to go up.

3 ( +3 / -0 )

Demand for household goods in March picked up because of the April 1 tax increase. Will be interesting to see the figures for April and beyond.

2 ( +2 / -0 )

As I work for myself I am putting up my prices-when I explain this to my customers they agree with me-I have slashed my prices to the bone but when it comes to my own fixed expenses I have to cover them so...........

0 ( +0 / -0 )

This is good. Japan needs some moderate inflation after a decade and a half of deflation.

-2 ( +1 / -3 )

That is excellent news considering my salary went down and 80 workers will be laid off from my factory. Inflation will really help us out.

2 ( +4 / -2 )

The usual fudging of numbers by the government in order to make the people think that politicians are doing something.

What they don't tell you is that deflation is only bad for thr government, and not the people. In a deflationary cycle, the value of people's money increases, and prices decrease. The purchasing power of your savings increases as well, meaning that the $2000 ypu put away 25 years ago is still worth at least $2000, whereas under "healthy" inflation, your $2000 savings would erode to $900 in spending power over the same time.

The reason that Japan and other developed countries are pushing inflation is because without it, they are limiting how much money they can continue to borrow and spend. The national debts of deveoped nations are not tied to the rate of inflation, so at a rate of say 2% per year, they can inflate away a fair amount of their debt over time. This is a disengenuous practice, and it encourages governments to borrow and spend irresponsibly, and at the expense of the value of our money.

Inflation helps the debtor, and harms the creditor. In the past, governments caused inflation by reducing the purity of the gold and silver coins which were the money of the time, allowing them to pay their debts using less of their gold and silver. How much real silver is actually in a £1 coin today? Now that countries use currency instead if money, they manipulate the value by controlling the supply. And governments of today are just like those of old, driving down the value of our money so they can spend more.

What a scam.

4 ( +7 / -3 )

Disillusioned. Some things went up way more than 3%. For example, a vending machine fountain-type drink in our cafeteria went from 60 to 70 Yen. That is a 16.7% increase (because the machines do not take 5 yen coins). 100 Yen bottles of water went up to 110 Yen. A 10% increase. These companies are laughing all the way to the bank and Taro has less money.

2 ( +3 / -1 )

" This is good. Japan needs some moderate inflation after a decade and a half of deflation."

So, you've bought that "inflation is good" fallacy hook, line, and sinker? Would you also like to buy a nice piece of oceanfront property in Arizona?

https://en.m.wikipedia.org/wiki/Economics_in_One_Lesson

2 ( +4 / -2 )

For the life of me i cannot understand why everybody has such a hard on for inflation! We kept hearing that with deflation, people were waiting for prices to drop, so they weren't buying. Why would higher prices make them want to buy now? It sounds to me like blackmail, buy now before we raise prices higher! Thanks a lot Abenomics.

1 ( +2 / -1 )

What they don't tell you is that deflation is only bad for thr government, and not the people. In a deflationary cycle, the value of people's money increases, and prices decrease. The purchasing power of your savings increases as well, meaning that the $2000 ypu put away 25 years ago is still worth at least $2000, whereas under "healthy" inflation, your $2000 savings would erode to $900 in spending power over the same time

Value of the money increases but unless you purchase them, the deflationary cycle continues and leads to lower wages and reduced consumption. As Upgrayedd stated, what Japan needs is a moderate inflation to reverse this cycle.

-3 ( +1 / -4 )

nigelboy Apr. 26, 2014 - 03:22AM JST what Japan needs is a moderate inflation to reverse this cycle.

Even the moderate inflation won't be sustainable unless wages start to rise at the same pace. Problem in Japan is that most companies are still hesitant to raise salaries. The higher wages will help drive a durable expansion and sustain inflation. However, raising wages is a low priority for manufacturers than increasing labor productivity, improving workplace conditions for women, expanding overseas operations and postponing retirement.

2 ( +2 / -0 )

Even the moderate inflation won't be sustainable unless wages start to rise at the same pace. Problem in Japan is that most companies are still hesitant to raise salaries. The higher wages will help drive a durable expansion and sustain inflation. However, raising wages is a low priority for manufacturers than increasing labor productivity, improving workplace conditions for women, expanding overseas operations and postponing retirement.

When you consider the raise as a result of the recent Shunto coupled with the 8 month consecutive increase of part timers as reported in the Nikkei, the current inflation is definitely sustainable. And let's not forget that this was also accomplished by reduced unemployment rate as well.

-5 ( +0 / -5 )

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