Economics
Japan’s Economy Misses Fourth-Quarter Forecasts
- Stronger yen will make 2 percent inflation goal harder to hit
- BOJ continues to make the case for persistent monetary easing
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The slowest economic growth in two years and the strongest yen in 15 months highlight Japan’s ongoing struggle to revive inflation even as prices elsewhere in the developed world begin to inch higher.
Japan’s economy grew at an annualized rate of 0.5 percent in the three months through December, capping an eighth straight quarterly expansion which is the longest stretch in nearly 30 years. But it was a decline from more than 2 percent in each of the previous two quarters, and with the yen’s surge set to lower import prices, the Bank of Japan looks to have an even tougher job hitting its 2 percent inflation target.