Inflation at 41-year high in Japan: Increased cost of gas-electricity and weak currency became the reason,
Inflation at a 41-year high in Japan: Increased cost of gas-electricity and weak currency became the reason, people said - raising children became difficult
In December 2022, the inflation rate in Japan reached its highest level in the last 41 years. Last month, the inflation rate in Japan was 4 percent. Because of this, the prices of essential commodities have skyrocketed. Due to inflation, people are facing difficulty in running houses. The reason for this record-breaking inflation is attributed to the weakening Japanese yen currency and rising energy bills.
A parent from Japan told NHK World Media Outlet – In December 2022, their electricity bill became one and a half times as compared to a year ago. And the price of gas has increased by 20%. Due to inflation, they will have to reduce their expenses, which will make it difficult for them to raise children.
In Japan, the prices of food and gas have increased by 20 thousand yen ($ 160) in a year. At the same time, people's income decreased by 3.8% in November. Despite all this, the inflation rate in Japan is lower than in other big countries. According to the latest data, the inflation rate in December 2022 was recorded at 6.5% in the US, 9.2% in Europe and 10.5% in the UK.
The Bank of Japan had set a target of keeping the inflation rate below 2%. But for the last 9 months, the inflation rate has remained above 2% continuously.
Japanese investors and economic experts were speculating that the Bank of Japan would raise interest rates to combat inflation. But the Bank of Japan has decided not to raise interest rates. At present, the interest rates are around zero.
Japan's annual trade deficit in 2022 was the highest since 1979. Japan exported 18.2% more last year but imports increased by 39% during this period, which also increased the trade deficit.
