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| Version 4 | Version 5 |
|---|---|
| Japan says deflation has returned | Japan says deflation has returned |
| (20 minutes later) | |
| Deflation has returned to the Japanese economy for the first time since 2006, the government has warned. | Deflation has returned to the Japanese economy for the first time since 2006, the government has warned. |
| The Cabinet Office said the falling prices could hurt the recovery of the economy, which left recession in the second quarter of this year. | The Cabinet Office said the falling prices could hurt the recovery of the economy, which left recession in the second quarter of this year. |
| The government's announcement came as the Japanese central bank kept interest rates on hold at 0.1%. | The government's announcement came as the Japanese central bank kept interest rates on hold at 0.1%. |
| The Bank of Japan said the Japanese economy was continuing to be helped by policy measures at home and abroad. | The Bank of Japan said the Japanese economy was continuing to be helped by policy measures at home and abroad. |
| Japan's economy grew by 4.8% in the July-September period - the second consecutive quarter of growth. | Japan's economy grew by 4.8% in the July-September period - the second consecutive quarter of growth. |
| 'Future discussions' | 'Future discussions' |
| The Cabinet Office said in a statement that "Japan is in a mild deflationary situation". | The Cabinet Office said in a statement that "Japan is in a mild deflationary situation". |
| The recent price falls are not right, and worrisome Finance Minister Hirohisa Fujii What is deflation? Japan's economic battle with deflation | The recent price falls are not right, and worrisome Finance Minister Hirohisa Fujii What is deflation? Japan's economic battle with deflation |
| Keisuke Tsumura, parliamentary secretary of the Cabinet Office, said the government would now work with the central bank to tackle the situation, but that no plans had yet been decided. | Keisuke Tsumura, parliamentary secretary of the Cabinet Office, said the government would now work with the central bank to tackle the situation, but that no plans had yet been decided. |
| "We have no specific ideas in mind at the moment," he said. | "We have no specific ideas in mind at the moment," he said. |
| "It will depend on how discussions develop in the future." | "It will depend on how discussions develop in the future." |
| Finance Minister Hirohisa Fujii said the situation was a concern. | Finance Minister Hirohisa Fujii said the situation was a concern. |
| "The recent price falls are not right, and worrisome," he said. | "The recent price falls are not right, and worrisome," he said. |
| "This is one of the major policy issues right now." | "This is one of the major policy issues right now." |
| Deflation is, as it sounds, the opposite of inflation, meaning that the general level of prices in a country is falling. | |
| Declining prices might sound like good news for consumers, but in fact this is bad for everyone. | Declining prices might sound like good news for consumers, but in fact this is bad for everyone. |
| As people wait for prices to fall still further before buying consumer goods, it leads to a vicious circle of decreased spending and increased unemployment. | As people wait for prices to fall still further before buying consumer goods, it leads to a vicious circle of decreased spending and increased unemployment. |
| 'The lost decade' | 'The lost decade' |
| Japan has a history of struggling with deflation. The 1990s are often referred to as Japan's "lost decade" because of its 10-year struggle with falling prices. | Japan has a history of struggling with deflation. The 1990s are often referred to as Japan's "lost decade" because of its 10-year struggle with falling prices. |
| It followed a collapse in prices in the housing market and the stock market at the end of the 1980s. | It followed a collapse in prices in the housing market and the stock market at the end of the 1980s. |
| The central bank was criticised for not acting fast enough to cut interest rates. | The central bank was criticised for not acting fast enough to cut interest rates. |