Country's economy moved back into deflation last month.
Quantitative easing continues in Japan, but it does not appear to be helping the economy, which remains very weak, nor inflation which moved back into deflation in August (-0.1%), as expected on the falling oil price. Core-core inflation, which excludes food and energy, rose more than expected to 0.8%, which is generally a better indication of underlying domestic inflationary pressures. A stronger economy has to be a key policy goal for Japan from here and I expect an easing fiscal policy to be the key driver for Japan in the next 12 months. The improving corporate governance landscap...
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