What, if anything, does it mean for BOJ Policy?
Raising interest rates is not necessarily bad for the economy. It can make zombie companies go bankrupt and incentivize firms and economies to be more productive and grow.
Very good points, Richard, also in the commentary below
Do you go food shopping in Japan? This statistical nuance has little to do with not just the perceptions of ordinary people, but with the ability of many people in all but the wealthiest classes to feed themselves — particularly the elderly and the working poor.
And coming on top of the (ongoing) ravages of COVID on small businesses, rising food prices are putting restaurants and other food service establishments in a terrible squeeze. In my town, even businesses that were able to survive through 2020 and 2021 have been closing for good since summer 2022.
This sort of argument is rather detached from real life.