Japan's Inflation Surges

Unemployment also rises in world's second-largest economy
By Jim O'Neill,  Newser User
Posted Mar 28, 2008 8:58 AM CDT
Money traders at a Tokyo dealing room.   (AP Photo/Kyodo News)
camera-icon View 2 more images

(Newser) – A double whammy of rising inflation and unemployment has experts worried that Japan’s economy—the world’s second largest—is fast losing steam, reports the Wall Street Journal. Inflation in February rose 1%, its fastest spike in a decade, and household spending stalled in the face of rising food and oil prices.

"With economic growth pausing and workers' wages not increasing, I cannot say that recent rises in consumer prices are good," said the economy minister. "I'm concerned about how such price rises will affect consumers." Japan’s unemployment rate edged up 0.1% to 3.9%, after staying flat for three months; officials said slowing economic growth was to blame.