Amari says falling oil prices positive for economy

A welcome lucky break indeed, buy hedge possible increases in pricing, make hay while the sun shines so to speak.

How can this comment be true? Isn't the crux of Abenomics inflation? Falling oil prices won't lead to inflation but deflation! Doesn't Mr Amari know how to toe the government's line?

Core-core inflation index excludes food and energy prices, BOJ "Price Stability Target" of 2 Percent can be studied in detail below. <>

"Falling oil prices won't lead to inflation but deflation!"

Technically yes, but the money saved allows Japanese consumers to spend on other things which can lead to ... inflation!

Sorry missed out the link, I think this will come some way in explaining the process behind these inflation targets set by the BOJ...

https://www.boj.or.jp/en/mopo/outline/qqe.htm/

@paulinusa

And how will lower oil prices allow the Japanese to spend more on other things?

And how will lower oil prices allow the Japanese to spend more on other things?

It probably won't, because when supply prices decline, Japanese companies generally pocket the savings, and don't pass them on to consumers in the form of lower prices. When the yen appreciated by 40% a couple of years ago, the cost of imported goods was not reduced by 40%, was it?