AFP, Tokyo :
The Bank of Japan Tuesday said tumbling energy prices could push inflation to zero, marking another setback for Tokyo’s attempts to kickstart the economy by conquering years of falling or stagnant prices.
While the central bank repeated its view that inflation expectations were “rising on the whole”-and it held fire on launching fresh stimulus-the commentary strikes another blow to efforts to reach a sustained two percent inflation level.
Tokyo’s campaign to stimulate spending faltered after the government raised the country’s sales tax last year to help pay down Japan’s enormous national debt.
That hammered consumer spending and led to a brief recession, while falling oil rates have pulled the carpet on energy-led price increases.
The Bank of Japan Tuesday said tumbling energy prices could push inflation to zero, marking another setback for Tokyo’s attempts to kickstart the economy by conquering years of falling or stagnant prices.
While the central bank repeated its view that inflation expectations were “rising on the whole”-and it held fire on launching fresh stimulus-the commentary strikes another blow to efforts to reach a sustained two percent inflation level.
Tokyo’s campaign to stimulate spending faltered after the government raised the country’s sales tax last year to help pay down Japan’s enormous national debt.
That hammered consumer spending and led to a brief recession, while falling oil rates have pulled the carpet on energy-led price increases.
