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Bank of Japan lets yen go to heck, trade deficit blows out, costs surge for manufacturers, prices surge for consumers.
Japan has been lagging behind a little in the global surge of inflation that started
Even In Japan, Inflation Begins To Rage After 23 Years Of True Price Stability
Summary
- Japan has been lagging behind a little in the global surge of inflation that started early last year. But it’s now coming along nicely.
- The index for “all items less fresh food” in Japan is what the Bank of Japan uses for its 2% “price stability target.”.
- The plunging exchange rate of the yen makes imported commodities and raw materials, including food and energy commodities, a lot more expensive in Japan.
Wolf Richter is the analyst at, and the publisher of, WOLF STREET, where he discusses business, finance, and money. Core focus: Federal Reserve, credits, equities, residential and commercial real estate, the auto industry, trade, consumers, and energy. He started this operation in 2011. Prior to that, he worked for 20 years in C-level positions, including 10 years in the auto industry. MBA from the University of Texas at Austin.