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Falling prices of vending machines in Japan declares Abe's anti-inflation setback
The prices of goods in Japan’s 5 million vending machines did not rise but fell, declaring that Abe’s anti-deflationary war had suffered a severe setback. Now these symbols of convenience have to compete with supermarkets and retail stores on the price of soft drinks. Data from the Japanese government shows that the current price is the lowest since 1976. These vending machines are like billboards showing the fall in prices and the deflationary challenge faced by Prime Minister Shinzo Abe. Takeshi Minami, an economist at the Japan Agriculture and Forestry Research Institute, said: The current deflationary situation in Japan is very serious. Bank of Japan Governor Haruhiko Kuroda has been emphasizing the importance of raising inflation expectations after implementing unprecedented monetary stimulus in 2013 to combat deflation. He even quoted in a speech to central bank staff and scholars that once you start to doubt yourself, you will never be able to fly. Japanese household consumption has been declining every month since 2014, and Abe's plan to stimulate consumption to revitalize the economy has suffered many setbacks. One-third of retail machine suppliers began to cut prices. In a vending machine in a busy street in Tokyo, the price of 500ml of Coca-Cola is only 100 yen (approximately RMB 5.2). The current economic revival is still not optimistic. Consumers with tight budgets will choose to bring their own drinks when they go out. Buying beverages also tend to buy at discounted supermarkets or convenience stores. This has also put pressure on suppliers of vending machines to reduce prices.
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