Japan Utilities Raising Prices Offer Abe Wrong Inflation
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Japan’s power utilities reported combined losses of about 1.6 trillion yen a year ago, the equivalent of $20 billion at the time. Yesterday, they repeated the performance.
On the face of it, the bad news for the companies looks like a boost for Prime Minister Shinzo Abe and his 2 percent inflation target in Japan as the utilities will probably raise electricity tariffs. Except it’s the wrong kind of inflation.