Tokyo. Consumer inflation in Japan rose to a 41-year high of 4 percent in December. From gas to burgers, the prices of all items have gone up. However, Japan’s inflation rate is still lower than some other countries, including the US. Japan, the world’s third largest economy, has been battling deflation for decades.
But now the situation has reversed. The Ministry of Internal Affairs and Communications said that earlier such a jump in consumer prices had come in December 1981. The US central bank, the Federal Reserve, and banks in many other countries have raised interest rates to combat inflation, but the Bank of Japan has long kept its benchmark rate below zero at 0.1 percent.
A sharp fall in the value of the Japanese yen against the US dollar and other currencies has put pressure on the Bank of Japan and it is expected that it too may soon start raising the policy rate.
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