Published Aug 24, 2026, 5:15 PM ET · Updated 3 months ago · 1 source

Japan's Return to Inflation Amidst Yen Weakness is a Mixed Blessing

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After three lost decades of deflation, Japan is now facing inflation, which is generally seen as a positive development for its economy. However, this inflation is accompanied by a significantly weaker yen, which has fallen from 110 yen to 70 cents per dollar, impacting global markets and contributing to rising borrowing costs.