Marketwatch is reporting that Japanese inflation has hit a decade high in May.
"Consumer prices in Japan climbed 1.5% in May, exceeding a consensus forecast for a 1.4% rise, according to government data released Friday."
This seems to be an ongoing story as I found a very similar article posted last April 2008 from the International Herald Tribune:
"Japanese annual inflation hit a decade high of 1.2 percent in March, helping trigger one of the biggest ever sell-offs in yen bonds as investors realized Japan has no immunity from price pressures facing the rest of the world, and that could eventually lead to a rate increase despite a weak economy."
We're used to 3 or 4% inflation so this sounds like nothing but to a country used to negative or 0% inflation I guess it's something. Everything is relative. Either way, some inflation in Japan may be good as this June 16 Bloomberg article states.
"A scourge that is threatening growth from Europe to China, inflation might be exactly what Japan needs. The prospect of higher prices may lift the economy by drawing out some of the 1,500 trillion yen ($14 trillion) Japanese households have squirreled away. Half sits in savings accounts paying almost no interest. Some is even stuffed under mattresses."
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