Some Concern Over Too Much Inflation in Japan

Despite decades of deflation, Japanese consumers are increasingly worried runway inflation could trigger a vicious cycle of capital flight, an excessively weak yen and an interest-rate spike, warns a Credit Suisse report.

“The Bank of Japan’s unprecedented monetary easing could be driving the upsurge in household inflation expectations,” said Credit Suisse Japan economist Hiromichi Shirakawa in a note published on Friday. If that fear spreads to enough consumers, that vicious cycle could be on the cards, he said.

Since April 2013, the Bank of Japan gone for a “shock-and-awe” campaign of monetary-policy easing in a bid to drag the country out of two decades of deflation and achieve its 2 percent inflation target.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.