Japan inflation edges up but way below target in AugustTOKYO — Prices in Japan edged up modestly in August, according to government data on Friday, as the world's third-largest economy continues its years-long battle with deflation. Inflation stood at 0.9 percent year-on-year in August, still far below the Bank of Japan's two-percent target, even though slightly higher than 0.8 percent in July and June and 0.7 percent in May. Japan has battled deflation for many years and the central bank's ultra-loose monetary policy appears to be having limited impact. Deflation is bad for the economy partly because the expectation of falling prices discourages spending and dampens growth. Analysts say Abe's re-election means that the government will take active fiscal measures to boost the still-fragile economy along with the central bank.

Source: Philippine Star September 21, 2018 00:11 UTC