Economic report: Japan's economy was in the "deflation"

Japan 20 November the Government announced the November monthly economic report. Japan Media believes that the report actually announced Japan's economy has been in decline in prices of "deflation". Japan Shimbun said the Government since June 2006, after three years and five months after the judgment of deflation. But on the other hand, Japan Bank (Central Bank) in the same decision of the monetary policy meeting, not only increases the economic expectations and denying economic deflation. The Government of Japan Bank economic awareness and deflation game show differences.

Deputy Prime Minister Naoto Cabinet to Cabinet report, made by the consumer price index continued to decline, "mild deflation" judgment.

The Government in March 2001, identified in the report of the first post-war deflation. Although not announced out of deflation in time, but in July 2006 the report of the deflation in the delete statement.

Naoto recently met with reporters, said: "need to be careful not to become the lead to economic decline. "Prime Minister Hatoyama is also in the afternoon on the media that:" the future will work to get rid of deflation. Governments need to develop good economic policy. ”

According to Japan's daily news reports on 21 November, 20, finds Japan economy after three years and five months after reinstalling "deflation". In the export-led, Japan has achieved over the longest postwar economic recovery, but the current financial crisis led to a sharp decline in the US and EU consumer, Enterprise equipment and staff began to excess. Employment instability leads to consumer downturn, more and more enterprises to respond to price competition, and the withdrawal of domestic production, reduction of personnel. If these trends continue, over a long period of decline in prices will lead to further deterioration of the economy.

Mitsubishi Rayon Corporation in March next year and will cease its lanshuqiao cause of polyester production and Dazhu cause of propylene production, because these two business operation rate has dropped to less than half of production capacity.

Polyester and acrylic for the production of chemical fibers for clothing. The cause of the cadres in dismay, said: "clothing prices fall to this level, you will be unable to communicate with Chinese products to compete. ”

Since last year's price movement has dealt a severe blow to the "high" and "high quality" as a selling point of department stores.

Has begun to adjust the price policy of Sogo merchandise Department Matsumoto Cannon said: "for the price to the consumer an acceptable range, you need to change the original business partner relationships. "The September launch of the brand clothing, cheaper than the original reduced about 40%.