As the world aggressively raises interest rates in the fight against inflation, Japan is trying to make high prices viable for longer.
With the risk of deflation on the Japanese economy in recent years, the Bank of Japan (BoJ, local central bank) has maintained a relaxed monetary policy in an attempt to hold the level of the consumer price index (CPI), which recorded in April 2.5%, the highest rate in 12 months in 31 years.
Analysts heard by Estadão/Broadcasthowever, do not see the sustainability of the rise in prices in the country.
Sayuri Shirai, professor of economics at Keio University and a board member of the BoJ between 2011 and 2016, explains that low inflation in Japan in recent years is related to sluggish consumption, in part due to the timid advance of wages, low expectations about future earnings and concerns about the longevity of the population.
Cultural factors also play a role, such as companies’ reluctance to raise prices. The information is from the newspaper. The State of São Paulo.
Source: CNN Brasil
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