International Desk: Inflation in Japan has reached the highest level in 40 years. As a result, pressure will increase on the central bank to withdraw the various stimulus packages given to restore the country’s economy.
According to Al Jazeera, commodity prices in Japan rose the highest since 1981 in November. The price inflation increased by 3.7 percent in that month compared to last year. This is partly due to the rise in fuel prices.
According to data from Japan’s Ministry of the Interior, processed food prices have risen the most. Besides, the prices of durable goods like electricity and air conditioners have also increased.
But Japan is in a better position than the skyrocketing inflation of the United States or the United Kingdom. Still, it is higher than the Bank of Japan’s 2 percent target.
The world’s third largest economy has not followed the same path as the United States and other countries have raised interest rates to combat inflation. Rather, they have continued to keep interest rates extremely low for growth.
