Japan’s Inflation Problem Is Cornering Its Central Bank

As the west muddles through murky economic waters, many call on the Federal Reserve to hold off a recession. But, as our neighbors to the east show us, central banks are highly constrained in what they can actually accomplish, and more inflation isn’t the right move.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

According to the most recent report on consumer prices, published at the Statistics Bureau of Japan, consumer prices rose 3.4 percent, year over year, in May. That’s down slightly from April’s 12-month increase of 3.6 percent, and it’s up solidly from May 2024’s increase of 2.9 percent.