Let me help you a bit here, Leppy. Here’s a nice article written recently about Japan and their economy….
Japanâs inflation paradox is creating winners and losers
You are correct that inflation in Japan was lower, but there’s more to the story. As the article mentions:
“
While inflation is bedeviling countries around the world, including the U.S., Japan represents a special case. For three decades the primary concern was deflation. A succession of prime ministers and central bankers unleashed record stimulus after the bursting of stock market and property bubbles in the late 1980s and early ’90s caused deep scars. Japan accrued public debt now worth more than twice the nation’s gross domestic product (GDP), yet prices and the economy kept flatlining.
In the early 2020s the supply shocks stemming from COVID-19 lockdowns and Russia’s invasion of Ukraine caused inflation to return. From mid-2021 it began accelerating to peak at 4.3% in early 2023. It was well below the post-pandemic highs of 9.1%, 10.6% and 11.1% in the U.S., Europe and the U.K., respectively, but a shock for a society unaccustomed to rising prices.”
So as we see here, while Japan’s inflation numbers were lower, they were still a massive shock to the people as these numbers represented a massive change in economics there. They weren’t used to any kind of price increases/inflation like this. Lower than us? Yes. Bad though because they’ve been dealing with deflation? Yes.
Let’s also touch on demographics of Japan. The average age there is 50 years old. Here in the USA, it’s 39. So while inflation and wage growth in Japan is absolutely benefitting younger peoples, they have a massive amount of elderly that are pensioners. The article continues stating, “Pensioners and workers on lower wages in rural areas, however, are going backward as the cost of living increases.”