A slight increase in inflation
In October 2024, inflation in Japan showed a slight increase, reaching 2.3% year-on-year, compared to 2.5%% in the previous month. This figure is in line with market expectations, according to Bloomberg’s consensus. The trend of Japanese inflation is a topic of great importance, since it reflects not only the health of the national economy, but also the global dynamics that influence the markets
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The causes of inflation
The reasons behind this increase can be attributed to several factors. First, the continued post-pandemic economic recovery has led to an increase in demand for goods and services. In addition, rising raw material and energy costs have helped push prices higher. The Bank of Japan’s monetary policies, which kept interest rates low to stimulate growth, also had a significant impact on inflation. It is important to note that, although inflation has increased, it remains below the 2% target set by the Bank of Japan, which suggests that the situation is under control.
Implications for the Japanese economy
Moderate inflation can have positive effects on the economy, stimulating consumption and investment. However, an excessive increase in prices could lead to a decrease in consumer purchasing power, creating concerns about economic stability. Analysts are closely monitoring these developments, as persistent inflation could force the Bank of Japan to review its monetary policies. The European stock exchanges, meanwhile, recorded a mostly positive session, with the Ftse Mib closing 0.2% higher at 33,294 points, reflecting a
climate of confidence among investors.