By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News, May 20, 2022
View on Tokyo, the capital of Japan. Photo credit : Pexels.
In April, inflation in annual terms in Japan hit 2.5%, reported the Japanese statistical office. This is a record figure since 2015. The key consumer price index, which does not take into account seasonal fluctuations in food prices, rose by 2.1%. The basis of the growth is the increase in energy prices – prices excluding energy carriers increased by 0.8%.
Inflation in Japan still lags far behind price growth in other developed countries – for comparison, annual inflation in the US reached 8.3% in April. Japanese companies usually try to cope with costs without raising prices for end consumers. This is especially true given that consumers are now highly sensitive to inflation, after a decade of deflation and low prices, and with a simultaneous lack of wage growth. The inflation target set by the Bank of Japan is 2%.
In the United States, annual inflation reached a record high of 7.9% in February and 8.5% in March. This is the highest level of inflation ever seen in the United States since February 1982 and the momentum has been there for months. US inflation has already reached 7.5% in January after reaching 7% in December 2021, 6.8% in November and 6.2% in October.
Read also : How to invest in gold
Amid this high inflation in the eurozone and the United States, gold prices remained stable today, reaching $1,849 per troy ounce, before stabilizing at $1,843 per troy ounce on May 20, 2022 at 3:15 p.m. New York time.
Gold is a good asset in tough times. In almost any crisis, it shows growth. The yellow metal has always been a great hedge against inflation because it rises in price when the cost of living standards rises.
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© Copyright 2022 – Swann Collins, investor and consultant in international affairs.