Like deflation in Japan, for example:
"Japan remains stuck in mild deflation, keeping a rein on the gradually growing optimism about the country’s economic recovery. The core index of consumer prices, which excludes volatile fresh food prices, fell 0.2 per cent in the year to July, according to government figures published on Friday – the same fall as in June. The core index for Tokyo – seen as an indicator of future price trends – fell 0.3 per cent in August, compared with a 0.4 per cent fall in July. Nationwide price figures show that Japan has remained in very mild deflation since the beginning of 2003, but with no real convincing trend suggesting an actual end to price falls."
I read this, as everything running steady, no important change in sight. Yesterday's news that export volumes in fact declined last month, though a detail, emphasises what a complicated picture this all is. Again in Japan, as in Germany, everyone is waiting for domestic consumpition to take the load, and I keep pointing out that there are good a-priori grounds for thinking this may not happen.
I am struck by the similarities between Germany and Japan, and by the way so many commentators seem to continually think that good times are just around the corner. These blog posts (here, here, and here ) show what a remarkable week it has been on the German front.
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