Japanese inflation is the highest in over 20 years

Japanese inflation is the highest in over 20 years

This speed is marginally better than the 3.1% predicted by economists in a Bloomberg News survey . In March , Japan’s inflation is only 1.3 % , the Bureau of Statistics says the country .

However, industrial production decreased by 2.5 % compared to the previous month . Reduced prices and wages also caused pockets of the country’s household shrinks . The economist commented that inflation will slow down this year and the country central banks ( BOJ ) will have to hit the end of stimulation to achieve the inflation target of 2 % ( after excluding the impact of the tax increase ) .
Japanese inflation

Japan Inflation increased after it started raising the consumption tax in April . Photo: Bloomberg

” I doubt inflation goal can advance to the BOJ . Though prices may cause inflation is expected to rise under , they make as consumers reduce real incomes are going down ,” Yasuhide Yajima – chief economist at NLI research Institute said .

Wage growth in Japan is going after inflation . In a survey conducted by the Ministry of Commerce of the 92 companies plan to increase salaries , only half made ​​. Yajima and JPMorgan Chase are predicting core inflation ( excluding impact from the tax increase ) may drop below 1 % in July .

Sayuri Shirai – BOJ officials yesterday said easing their current can extend into next year . 75 % of economists in a Bloomberg News survey also said that the agency will have to increase stimulus later this year .

Japan’s economy is predicted negative growth of 3.4 % this quarter . Data last quarter ‘s -5.9 % .

Japanese inflation is the highest in over 20 years
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