On Japan’s Inflation
Commentary
Japan has long been regarded as a sunset empire with lost decades: Inflation has always been low while the Bank of Japan (BoJ, central bank) is reluctant to reverse the ultra-easing monetary policy. Then the Japanese Yen has been free falling against the U.S. Dollar as well as other major currencies. But look at the figures. Japan’s overall inflation is already 2.6 percent (July figure), up from -1.2 percent at the end of-2020; core inflation excluding fresh food and energy also stands at 1.2 percent. In a country with zero trend growth in GDP and a declining population, such inflation is high….