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William Pesek

Stagflation Stalks Abenomics

Signs are emerging that Shinzo Abe's plan to remake the Japanese economy are amounting to little, as inflation rises and growth stalls.

Maybe it's time to stop dismissing the risk of stagflation in Japan.

I've raised this risk a couple of times during the last 12 months as inflation rose without commensurate increases in wages or productivity. But yesterday's ugly gross domestic product report suggests it's a clear and present threat to Japan's best chance at economic recovery in more than a decade.