Released on the same day of the anniversary that Japan officially ended the Second World War in the Pacific, the government report revealed on Thursday also indicates a near end of deflation in the country. Based on the most recent assessment on the country’s consumer prices, the Japanese economy is most likely to recover soon. Along with it is the government’s better assessment on jobs available in the country.
According to the August issue of the government’s monthly report on the economy, “Recent price developments indicate that deflation is ending.” Compared with the previous month, pressure on deflation has eased. Consumer prices in June were also traced to have increased, said to be the first time in 12 months. However, it was said that the increase was credited to the high electric bills instead of the increase in demand, which would imply the consumers’ buying capacity. The government also reminded that despite the affirmative report and its indication, to say that Japan has already gone past deflation is premature.
Besides the ease from deflation, recent reports with regard to the country’s job market have also been affirmative. Unemployment rate recorded in June was 3.9 percent, which was the lowest the country had since October 2008. The previous month’s job market also showed signs of improvement even though signs of weaknesses were also found evident. On a macro level, the Japanese government’s assessment states that the economy is “picking up steadily and showing some moves toward a sustained recovery.”
[via Global Post]