ZCZC
BCN-13
JAPAN-ECONOMY-INFLATION
Stubborn Japan inflation way below target in July
TOKYO, Aug 24, 2018 (BSS/AFP) – Prices in Japan edged up only marginally in
July, according to government data on Friday, as the world’s third-largest
economy showed little sign of winning its battle with deflation.
Inflation stood at 0.8 percent year-on-year in July, unchanged from the
previous month and still far below the Bank of Japan’s two-percent target.
With fresh food and energy stripped out, prices rose by even less — just
0.3 percent year-on-year in July, the internal affairs ministry said.
Japan has battled deflation for many years but the central bank’s ultra-
loose monetary policy appears to be having limited impact.
The Bank of Japan (BoJ) has signalled it has no plans to drop its policy,
despite tightening moves in other major economies.
Deflation is bad for the economy partly because the expectation of falling
prices discourages spending and dampens growth.
The latest data come after the BoJ revised its inflation forecasts late
last month, making only minor tweaks to a monetary policy that has so far
failed to lift prices and boost the Japanese economy.
BSS/AFP/HR/1000