News from 2018-06-15 / KfW Research
Japan: Is record low unemployment finally bringing back inflation?
The Japanese labour market has hit record levels, with low unemployment and plenty of job openings. Wages and inflation are now expected to increase at a higher pace. However, the link between inflation and unemployment has weakened. So although the tight labour market will help revive inflation, its impetus will probably not be strong enough to push inflation up to the Bank of Japan’s target rate.
Japan: Is record low unemployment finally bringing back inflation?
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