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Good News: Japan’s Inflation Surges to 32-Year High
Consumer prices in Japan grew at a welcomed annualized rate of 3.4% in May, the biggest increase in more than three decades, the government reports.
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Consumer prices in Japan grew at a welcomed annualized rate of 3.4% in May, the biggest increase in more than three decades, the government reports.
Japan has been trying to create modest inflation, which helps drive growth. The country has struggled for years with destructive economic deflation, in which the prospect of lower prices discouraged consumers from buying or companies from investing.
Japan's central bank has targeted a 2% inflation rate. BBC News notes that government initiatives have created 12 consecutive months of rising consumer prices. The news service says increasing the country's sales tax to 8% in April from 5% for the past 17 years appears to be helping.
The tax increase also should help ease the government's public debt, which has ballooned to 230% of Japan's gross domestic product.
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