Experienced Investor
Japan’s economy signals stagnation and weakness
Japan’s economy has shown signs of stagnation and some weakness as households spent less and factory output stayed flat in July.
Official data released on Friday also showed consumer inflation stayed unmoved at 3.3 per cent from the month before, the BBC reports.
Japan raised its sales tax from 5 per cent to 8 per cent in April so analysts said “real” inflation for July was actually 1.3 per cent.
Japan’s economy, which is the world’s third-largest, suffered from deflation for almost two decades.
The central bank’s current target for the inflation rate is 2 per cent.