Much of the recovery touted by the Japanese Administration seems to be in distress as inflation continues to outpace growth in the nation. Although inflation is well within striking distance of the goal set by the Bank of Japan, the result has seen real incomes decline and purchasing power eroded. The latest rise in unemployment from 3.2% to 3.4% also hearkens to the deterioration in consumer spending which is slowing the flow of money through the Japanese economy. While unemployment remains notably restrained, the reality is a society that has many of the youngest workers in part-time positions whilst the older population stays employed for longer. A weaker Yen has naturally helped exports as evidenced by the gains in industrial production, but the tradeoff has been weakened domestic consumption.
Japanese Inflation Stays Positive
Daily Analysis - 27/02/2015