Courtesy of Mish.
Japan’s “Core CPI” excluding food, fell two months straight. It’s back again below zero again.
Economists expect more stimulus, and Japanese equities are once again in rally mode.
Have any of these economic illiterates ever considered that stimulus is the problem, not the solution?
Back Below Zero
Please consider Japan CPI Falls 0.3%, Raising Pressure for More BOJ Stimulus.
Japan’s consumer prices dropped for a second month as central bank Governor Haruhiko Kuroda struggles to spur inflation with record asset purchases and negative interest rates.
Consumer prices excluding fresh food fell 0.3 percent in April from a year earlier, after dropping by the same amount in March, according to a statistics bureau report on Friday.
“Japan’s inflation is going to remain weak,” said Takashi Shiono, an economist at Credit Suisse Group in Tokyo. “If you look at economic and price fundamentals, the BOJ has to ease further soon.” Shiono, who correctly forecast the 0.3 percent drop, cited low energy prices as a key drag on inflation.
“Has to Ease”
Can anyone make a case why Japan “has to ease”?
