Japan Poised for Era of Sustainable Inflation, Nomura Say
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Japan is poised to exit more than a decade of deflation as a strengthening yuan bolsters China’s buying power, fueling Japanese production and buoying prices, according to Nomura Holdings Inc.
Demand from China will propel continuous gains in Japanese consumer prices next year as companies ramp up production with factories now running at about three quarters of capacity, Takahide Kiuchi, Nomura’s chief economist, said in an interview on April 13. The yuan has gained 5.2 percent against the yen this year, making Japanese products more affordable in China, which became Japan’s biggest overseas market in 2009.