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Japan close to escaping deflation

Japan moves close to beating 15 years of deflation. Japanese consumer prices have risen at the fastest pace in five years, showing government policies to end its deflation problem may be taking effect.

Deflation is the opposite of inflation; it is where prices fall as opposed to rise.

Bank of Japan (BOJ) Governor Haruhiko Kuroda said earlier this week that policymakers have been looking to break the country’s “deflation equilibrium”.

Japan has faced nearly two decades of stagnant growth and falling prices because companies and households have held off on spending, based on the assumption that prices will not rise.

Farrell Financial Planning are independent financial advisers based in Glasgow. We do not offer any advice on future inflation figures.

Farrell Financial Planning offer independent financial advice on pensions, investments, life assurance, income protection, inheritance tax planning and much more.

All information accurate as at 27/12/13.

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