With falls in headline inflation raising questions about its policy approach, the Bank of Japan has recently been highlighting alternative price gauges that show inflation to be rising. These alternatives are timely, but narrow and skewed towards food prices, making them poor measures of general price trends. Broader measures show that ample spare capacity is still keeping a lid on inflation pressures and, with wages falling despite low unemployment, we remain convinced that policymakers will have to step up the pace of monetary easing before long.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services