Japanese deflation is accelerating. Consumer prices ex-food fell a whopping 2.4% in August, the largest decline ever since records began in 1971.
This beat even July’s previous record-breaking 2.2% drop. It was the sixth consecutive month of declines.
Even after stripping out both food and energy, prices still fell 0.9% year over year, as they did in July. This is one of the largest drops on record, only surpassed by a few months during 2001.
Japan’s never-ending horror story should serve as a warning for the US. Sometimes even easy money and massive stimulus aren’t enough to keep deflation six feet under.
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