Japan unlikely to slide into stagflation, says senior central bank official
People wearing face masks to protect against the spread of the coronavirus walk through a shopping arcade in the Asakusa district in Tokyo, March 7. AP-Yonhap
Japan's economy is unlikely to slide into a "stagflation-like situation" where rising inflation and shrinking economic growth co-exist, a senior central bank official said on Wednesday.
"Japan's consumer inflation is likely to clearly accelerate" as companies pass on rising energy and raw material costs, said Seiichi Shimizu, head of the Bank of Japan's monetary affairs department.
"But we don't expect Japan to face a stagflation-like situation, defined as a combination of rising inflation and a contraction in economic growth," he told parliament. (Reuters)