Japan’s Shrinking Economy Hints at Stagflationary Risk
Achieving inflation has been a long-term goal for policymakers in Japan.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
Japan’s lack of growth over the last three quarters points to the risk of a sputtering economy transitioning toward a mild bout of stagflation instead of the positive growth cycle long sought by the central bank.
The latest data show that the world’s fourth-largest economy has failed to grow since spring last year as the strongest inflation in generations weighs on consumer spending.