The Yen Is Tanking. And That's Just Fine
The Bank of Japan appears to be comfortable with the currency’s path, which puts inflation targets within reach. Consumers face a different reality.
Snatch ‘em before they rise.
Photographer: Akio Kon/BloombergBloomberg Opinion has been chronicling inflation's journey — from being too low for many policy makers’ comfort before Covid to being the new public enemy No. 1. In the U.S., inflation accelerated to 8.5% in March. It’s also on the rise in Japan, though hasn't quite reached those elevated levels. The country is contending with a weakened yen, which is both a byproduct of higher inflation and something that exacerbates the situation.
Columnist Daniel Moss is joined by Bloomberg News senior editor Gearoid Reidy and economy reporter Yuko Takeo, both based in Tokyo, to discuss what factors contributed to inflation in Japan. This is an edited transcript of their conversation.