In Japan, excluding fresh products, consumer prices increased by 2. In July, the year-on-year increase was 4%, suggesting an acceleration in inflation.
For the fourth month in a row, inflation in Japan surpassed the Bank of Japan’s objective of 2 percent excluding fresh produce.
However, considering that the country’s present inflation is mostly attributable to a transitory surge in energy costs, the Bank of Japan does not expect to tighten its exceptionally loose monetary policy at this time.
Indeed, discounting energy costs, consumer prices rose by 1. According to Ministry of Internal Affairs figures, the unemployment rate was 2% in July, up from 1% in June.
Many experts, however, believe that inflation in Japan would grow faster than projected in the coming months.
In the face of Japanese customers used to decades of steady, if not cheap, pricing, a substantial number of enterprises in the nation prefer to reflect increases in raw material costs in their selling prices, which was nearly unheard of until this year.
In addition, the Bank of Japan upped its inflation prediction for fiscal year 2022/2023, which began on April 1, to 2. At the end of July, the rate was 3%.
His initial prediction was 1. The percentage is 9%.
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Consumer prices in Japan are growing.
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