Asia Centric: Takaichi’s Fiscal Ambition Clashes With BOJ Policy
Inflation has returned to Japan after decades of near-zero price growth, with consumer prices rising close to 3% – the fastest since the 1980s. The cost-of-living squeeze, driven by food...
By Clara Chen · Bloomberg
Inflation has returned to Japan after decades of near-zero price growth, with consumer prices rising close to 3% – the fastest since the 1980s. The cost-of-living squeeze, driven by food prices, helped topple the previous administration and propel Sanae Takaichi to power as Japan’s first female prime minister. Her pro-growth, big government stance promises fiscal stimulus, but risks complicating the Bank of Japan’s efforts to contain sticky inflation.