Why is it that the EU, UK, Canada, NZ, USA and Australia all keep trying to reach the same goal of suppressing demand until unemployment is high enough for prices to fall. It's insane.

What I was basing my observation on: https://theconversation.com/japan-has-gone-its-own-way-on-fighting-inflation-can-nz-learn-from-a-global-outlier-210618

[–] stopthatgirl7@kbin.social 2 points 1 year ago* (last edited 1 year ago) (2 children)

Yeah, shit is NOT good over here. Prices on basic necessities have soared but wages haven’t appreciably changed in, legit, 20 years. People are sick of Kishida and hours approval rates are in the tank because he’s raised taxes while inflation has meant basic goods is up. Japan is not a good example right now.

Here’s an article I read a few days ago on the inflation over here Notice how they leave out the cost of food and energy calculating things. Plus, that talk about:

Energy prices dropped 8.7 percent, weighed down by government subsidies for lowering gasoline and other fuel costs to support households. The fall was smaller than the previous month's 11.7 percent.

sounds nice until you consider it had shot up between 24-48% depending on where you’re getting power from (I’m lucky. I’m in Osaka so prices only went up about 25%. They went up 48% in Hokkaido).

[–] burningmatches 2 points 1 year ago

The BoJ measures inflation to help it manage the economy. It’s not a political tool. As an individual, changes in your cost of living are personal to you. You don’t need the central bank or the government to tell you about it.

Obviously, the BoJ isn’t focused on individuals. It wants to see what’s happening across the whole economy. Through research that is freely available, it has determined that the index provides a more reliable signal when volatile fresh food prices are excluded (because the things that typically cause these prices to change, like the weather, don’t reflect a broad shift in the economy).

You’re wrong that energy isn’t included. That sentence is referring to a different (“core-core CPI”) index, which is higher at 4% because energy prices have gone down. Japan’s energy problems are as result of the post-Fukushima shift from nuclear, largely a result of public opinion.

Put simply, CPI isn’t a measure of “cost of living“. It’s a tool for central bank policy.

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