Japan's historic economic problem has been low/negative inflation
(see below) and Abe's medicine, while it may have unwanted side
effects, seems to be working.(see below)
CPI Japan 2013 1.61 %
CPI Japan 2012 -0.10 %
CPI Japan 2011 -0.20 %
CPI Japan 2010 -0.40 %
CPI Japan 2009 -1.67 %
CPI Japan 2008 0.39 %
CPI Japan 2007 0.70 %
CPI Japan 2006 0.30 %
CPI Japan 2005 -0.40 %
CPI Japan 2004 0.20 %
(See more at:
http://www.inflation.eu/inflation-rates/japan)
The consequent lowering of the Yen has caused the turnaround in
inflation from -0.10% in 2012 to 1.61% in 2013 and was designed to benefit
Japanese exporters who are the economic powerhouse of Japan
and not the small domestic companies included in the above survey.
Japan's heady economic decades in the 70s & 80s were all about
export like the China of the past 15 years and IMO, Abe is trying
to re-ignite Japan's international competitiveness with a low Yen
of which the by-product is inflation and pressure on japanese domestic
company margins.
mm
