September 10, 2023
Banking International

Cost of living: Japan’s inflation hits a 41-year high

Cost of living: Japan's inflation hits a 41-year high

Japan’s core customer fee inflation edged up to 3.7% in November, the highest it has been since 1981.

That was when a Middle East problem disrupted oil presentation and resulted in power expenditures to glide. However after decades of the nation attempting to increase inflation, Japanese customers are now encountering the discomfort of elevated fees despite fixed earnings.

Until now, the Bank of Japan (BOJ) had maintained its ultra-loose financial procedure to increase its economizing.

But before this week, it shocked the demand by putting forward the cap on the interest rate on its 10-year administration bond from 0.25% to 0.5%.

As an outcome, the Japanese money has spiked against the US dollar, slamming 151 yen to the greenback for the first time since 1990.

Expense of residence: The shock of rising prices in Japan

The weak currency has fed into the country’s inflation as it accelerated high import costs which went up due to the war in Ukraine.

Japan has one of the lowest inflation rates in the world, and has bucked the trend of other G7 countries that have gradually raised interest rates to curb soaring prices.

The annual inflation rate in the US is 7.1% while it is 11.1% in the EU and 10.1% in the UK.

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