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isakmarrtoday at 2:13 PM4 repliesview on HN

> In Japan, there's a big issue when a snack raises its price 2 cents

That can't be true. So inflation just doesn't exist in Japan?


Replies

corfordtoday at 2:57 PM

For decades after the 1989 crash they were in deflation. Only in the last 3-4 years has any meaningful inflation returned. Some context here: https://en.wikipedia.org/wiki/Lost_Decades

numpad0today at 3:56 PM

For like past 30 years yes. The inflation during that time were covered by shrinkflation and value adds through feature adds. I think some argue it has to do with lack of popularity of credit cards and electronic payments, which nudge prices to gravitate towards nearest coin denominations which in turn suppress inflation. Which is probably true, considering if a bottle of soda went from a dollar and a dime to a dollar and two dimes, or the umaibo went from one dime to a dime and three cents totaling as four distinct coins, those will be very tangible to consumers.

rjh29today at 2:14 PM

Historically, no. Prices were basically flat for a long time until covid.

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ForHackernewstoday at 2:18 PM

Population is flat or declining so that's one of the main drivers of inflation. Japan could be a pioneer in steady-state economics.

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