Japan Consumer Prices: All Blogs in 2022 Have Been Completed

 Article Source: https://mainichi.jp/english/articles/20221223/p2g/00m/0bu/020000c

Ideas:

Consumer prices are not helping in terms of consumers spending a some households are seeing their disposable income or extra income decreasing each month.

Of course that means less spending on non-essential activities in the economy. 

Again it must be remembered that the Bank of Japan's 2 percent target was never about prices increases related to wholesale prices but more about consumer spending and consumer demand which of course is not where they should be yet.

The weak yen of course is the main challenge for the Japanese economy as the Bank of Japan seems to want to keep the yen weak, while the US and the EU keep increasing its rates which causes the yen to remain weak.

The Bank of Japan might say inflation is only temporary but consumer might see things differently as they have live through it everyday. 

The 2 percent target goal probably will not be reached until April 2023 when and if companies increase wages and then there could be a surge in the overall economy.

The Bank of Japan again increased spending by trading Japanese government bonds.

Japan's debt to GDP ratio is the highest in the world and most likely will continue to remain high for a while.

Households and families probably have to reduced spending, look for substitutes and or reduced unneeded extra income spending as food prices continue to increase.

It's logical that companies pass on their higher costs to the next in the supply chain including the final customer.

They can only absorb so much in costs before their profit margins become too compromised and they have to pass on some or all of their costs to their customers.

Companies too are probably feeling the effects of higher energy prices along with households and as such no one is immune from the higher prices in the Japanese economy.

The Japanese government it seems is trying to help families and households but sometimes it takes a very long time for them to do something while families have to live through it everyday.

Government subsidies are good and needed but as global energy prices increase for wholesalers they too need continuous help as their prices continue to increase.

The so-called core-core CPI again is just a number as some families might not feel that much of a difference price changes but more likely many families to feel it everyday and again their disposable income or extra income becomes less and less each week and each month.

If and when companies do increase wages what be the lag effect before wage earners can feel good about their wage increases and how long before overall economy begins to see some significant positive effects.

Have a nice day and be safe!