What is the rise in prices due to the depreciation of the Japanese yen?
The comprehensive consumer price index excluding food (excluding alcohol) and energy rose 0.1% from a year earlier.
There are almost no special factors pulling prices down, such as reductions in mobile phone tariffs.
(Major mobile carriers introduced cheap plans in spring 2021.)
The Bank of Japan targets a 2% rise in prices, but the current price increase is not accompanied by a virtuous cycle in the economy such as higher wages or increased demand.
The rise in prices is underpinned by higher crude oil and grain prices due to the Ukraine crisis and by supply chain disruptions caused by the COVID-19 pandemic.
There will not be an immediate rate hike. It would be inappropriate to adopt policies that restrain demand when the economy is already stagnant due to insufficient demand. The situation is completely different from the United States.
By the way, please look at the graph. If a weaker yen were to push up prices, it would occur from now on. However, historically, except for the 2014 consumption tax increase, there has not been price rises (year-on-year) with a weaker yen. What will happen this time?
× ![]()
