Japanese supermarket
Media playback is unsupported on your device

Japan inflation hits a 32-year high

Consumer prices in Japan rose at an annual rate of 3.4% in May, the fastest pace in 32 years ,as the effect of the sales tax hike started to be felt.

Japan raised its sales tax rate from 5% to 8% on 1 April.

The price rises are a big boost for policymakers who have been trying to spur inflation in an attempt to revive the country's economy.

Japan has been battling deflation, or falling prices, for best part of the past two decades which has hurt domestic consumption.

Sharanjit Leyl asked market strategist Evan Lucas about the latest figures.

Watch more reports on Asia Business Report's website.

  • 27 Jun 2014
Go to next video: Japan inflation rises after tax hike