Japan Deflation Slows On Rising Food And Fuel Costs

[interestrateripoff]

http://www.bbc.co.uk/news/business-12574954

Japanese deflation has slowed in January buoyed by high food and fuel costs.

Consumer prices fell 0.2% in January from December, the statistical office said. Prices were unchanged from a year earlier.

However, analysts said deflation was still a problem, adding the economy was still in the early stages of recovery.

When fuel and food costs are excluded, consumer prices fell at an annual rate of 0.6%.

"The headline numbers are being distorted by commodity prices," said Richard Jerram of Macquarie Group.

"The underlying trend is not particularly encouraging...In general it shows deflation is moderating, but not going away."

Staying the course

As a result, many analysts say they do not foresee the Bank of Japan (BOJ) changing its monetary policy any time soon, and expect it to keep interest rates on hold.

The BOJ cut interest rates to almost zero last year.

It has said it will keep them at that level until consumer price growth returns, and the rate of inflation nears 1%.

Looks like the Ben Bernanke is helping the Japanese to beat the dreaded deflation.

At least some good news from increasing food and fuel prices. If Bernanke can create just a bit more inflation the Japanese will break out of the deflation spiral.....

[Democorruptcy]

http://www.bbc.co.uk/news/business-12574954

Looks like the Ben Bernanke is helping the Japanese to beat the dreaded deflation.

At least some good news from increasing food and fuel prices. If Bernanke can create just a bit more inflation the Japanese will break out of the deflation spiral.....

If tweedledee is helping them inflate then tweedledum must be happy