How Will BOJ Respond to Return of Deflation?

posted by Richard Katz on September 25, 2015

Found in Japan, categorized in Macro

Tags: Richard Katz yen deflation Japanese economy

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There is a second factor that has been very closely tied to inflation over the past decade: the ups and downs of the yen.


By one measure, deflation, like the swallows at Capistrano, has returned to Japan. According to the official target of the Bank of Japan (BOJ)—the consumer price index (CPI) except for fresh food—prices fell -0.1% in August from last year. This is the first time Japan has seen deflation since April 2013.

About Richard Katz

Richard Katz

Richard Katz is Editor of The Oriental Economist Report, a monthly newsletter on Japan, as well as the semi-weekly TOE Alert e-mail service on Japan, and is also a special correspondent at Weekly Toyo Keizai, a leading Japanese business weekly.

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