Oct
26
Japan’s Households See Prices Rising, Even Though They’re Not
ByKuroda is succeeding on psychology front in his inflation plan
Photographer: Tomohiro Ohsumi
Bank of Japan Governor Haruhiko Kuroda has two main tools for reaching the 2 percent inflation target: asset purchases and psychology. On the latter, he wants Japan’s companies to feel they can raise prices and households to think that prices will rise soon, so they will rev up spending now.
He’s not achieving the intended target, yet he’s succeeding on the psychological front.Japanese consumers perceive that inflation is rising 5 percent, though core consumer prices actually fell 0.1 percent in August and have been slowing since June 2014. In a year’s time, they see prices climbing 3 percent…
Japan’s Households See Prices Rising, Even Though They’re Not
