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You Wanted Inflation, You Got It: Japanese Gasoline Price Rises To Eight Month High

Tyler Durden's picture


When one thinks of open-ended, "inflation targeting" one usually thinks of soaring markets, at least in nominal terms, exploding central bank balance sheet, and happy central planners. What one usually does not think of, is, well, inflation targeting. Because while the shadow banking financial system, perfectly devoid of deposits, has for now provided a sufficient buffer from trillions of reserve injections from spreading into the broader economy of the US and Europe, and has primarily impacted stock markets as unsterilized liquidity injections are used by banks to bid stocks, Japan has been far less lucky in this regard. As it turns out, the massive slide in the Japanese Yen in the past 2 months on nothing but ongoing promises of open-ended action, something Europe has perfected, and the US most recently enacted, may have already achieved its goal of pushing inflation. only not to the desired 2% level, but about 50% higher. Luckily, it is for such trivial things that nobody really every needs, such as fuel and consumer products - just ask the BLS.

As the Nikkei reports "the average price of regular gasoline rose to an eight-month high of 150 yen per liter on Tuesday, up 1.2 yen from a week earlier, according to data released on Thursday by the Agency for Natural Resources and Energy. The price has climbed 4.5 yen, or 3%, since late November, when the yen's downswing started. The dollar-based price of crude oil has remained steady since November, but the yen's slide by about 10 yen to the dollar has resulted in higher import prices."

It gets better

The price of kerosene rose to a nine-month peak. Growing demand due to a cold spell have pushed the price of the fuel up more sharply than other petroleum products.


External hard-disk drives are selling at higher prices at volume electronics retailers, partly because key imported components are paid for with dollars. The average price shot up 540 yen from a week earlier to 8,580 yen, according to research firm BCN Inc.


At Rakuten Inc.'s (4755) online mall, one of the most popular Roomba robotic vacuum cleaners sells for around 29,000 yen. The price of the U.S. product could exceed 30,000 yen after the current inventory runs out in the spring, said a company official.

And that old barbarous relic just hit an all time high:

The domestic retail price for gold hit a 32-year high earlier this month. "Jewelry prices are closely linked to those precious metals, so price hikes will likely spread," said an official at F&A Aqua Holdings Inc.

The Nikkei's conclusion: "Households are beginning to feel pinched by the weaker Japanese

Well, the Japanese people wanted Abe, and his inflation targeting policies. They got what they wanted: at least the endless jawboning part that is. We have yet to see just how the BOJ will implement the action that is supposed to back the surge in the USDJPY by over 1000 pips in two months. And now, they also have the surging prices to show for it.

And once the full impact of the spillover from unlimited monetization in the country with the JPY1 quadrillion in debt spill over, look for the prices of all goods and services to explode.

But at least Japanese exports will surge. Oh wait, that would assume that the nationalistic Abe government smoothes tensions with China, something it has not only not done, but exacerabted drastically in the past month or so.

We wonder how long the Japanese people will last until they say enough with this inflationary experiment, and kick Abe out on hopes of a prompt return to deflation.

Perhaps someone far smarter than the MIT and Princeton educated central planners conceived the saying that one should be careful what one wishes for...

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Thu, 01/17/2013 - 19:18 | 3164338 BKbroiler
BKbroiler's picture

This is the last comment I'm reading today.  I'd like to leave work in a good mood, so thanks, man.


Thu, 01/17/2013 - 22:19 | 3164950 espirit
espirit's picture

Cats will do fine when you're really hungry. Better than whey, or god forbid... tofu.

Thu, 01/17/2013 - 18:22 | 3164103 Citxmech
Citxmech's picture

Regardless of whether you choose to eat meat, it's next to impossible to conduct any form of intensive agriculture without using animals in some capacity (ie for tillage/fertilizers).

Having said that, the typical Western diet does contain way more meat than necessary - but arguably, your healthiest dietary choice would to be to remain omnivorous.

If you want to keep from killing your critters, chickens are a great option.  Home grown non-Auschwitz Farm eggs are healthy and tasty and they produce wonderful compost and keep the slugs at bay!

Thu, 01/17/2013 - 18:27 | 3164128 Praetorian Guard
Praetorian Guard's picture

I agree. Fresh eggs are the best!

Thu, 01/17/2013 - 18:27 | 3164131 oldman
oldman's picture


Your point above is exactly so. Carnivores have always eaten planteaters and that is never going to change as long as there are carnivores: natural law.

I just wish that you dudes were aggressive enough to go out on the street and kick some ass. There are plenty of us planteaters here already, so you won't have to worry about bringing something to eat.

We will take the chance that we can still outrun you            om

Thu, 01/17/2013 - 20:58 | 3164697 TheFourthStooge-ing
TheFourthStooge-ing's picture

Praetorian Guard said:

In fact, it is the high pH levels induced by eating meat and other shit food that leads to most diseases. Keeping ones pH/blood levels alkaline (base) is more productive in humans and in overall health.

For the sake of accuracy, I must point out that high pH levels are alkaline/basic. Low pH levels are acidic.

Thu, 01/17/2013 - 21:07 | 3164718 akak
akak's picture

FourthStooge, just because you have a basic knowledge of chemistry is no reason to go sour on us with your corrosive comments!  Please maintain your equilibrium in this forum, and stop being so reactive.

Thu, 01/17/2013 - 23:02 | 3165065 TheFourthStooge-ing
TheFourthStooge-ing's picture

[cough] free radical [cough]

Thu, 01/17/2013 - 23:51 | 3165169 akak
akak's picture


[cough] free radical [cough]

Have you been breathing those NOx fumes again? 

You KNOW what they do to the lungs ... and it ain't pretty!

Thu, 01/17/2013 - 17:47 | 3163984 Praetorian Guard
Praetorian Guard's picture

So does ethylene glycol, lead acetate, Potassium cyanide, etc. all taste "good" but will kill you...

Thu, 01/17/2013 - 19:45 | 3164421 ThirdWorldDude
ThirdWorldDude's picture

Look up haplotypes, they have your answer, i.e. the primary food source of your ancestors from a few millenia back is still recorded in your genes...

(I became seriously ill upon turning into a vegetarian and realized it's my changed dietary regime that's the cause of it. With a naturally fast metabolism and very strong stomach acids, my body simply can't adjust to a low-proteine diet. Carnivore, bitchez!)

Thu, 01/17/2013 - 17:33 | 3163934 Miffed Microbio...
Miffed Microbiologist's picture

Healthier for some but not for others. I've tried vegan, raw vegan and vegetarian to improve my health and actually became less healthy. I was exhausted , my skin became sallow, my hair was dry and frizzy. I adjusted the veggies and nuts to no avail. I'm a protein type. Of course I eat lots of veggies too but I must have meat protein as the center of my diet. Most vegetarians I know do not look the picture of health. It's more of a religion than a way of eating in my experience.


Thu, 01/17/2013 - 17:36 | 3163947 Praetorian Guard
Praetorian Guard's picture

You can get ample amounts of protein from whey, and other plant based matter such as nuts, etc. and be perfectly healthy. The key is monitoring sugar and pH levels. Most vegans, don't eat right to begin with and smell weird... ;)

Thu, 01/17/2013 - 18:05 | 3164055 Miffed Microbio...
Miffed Microbiologist's picture

Perhaps for you but it didn't work for me. When I was vegetarian I was so sleepy all the time nuts were the only thing that kept me going. I started eat vast amounts and gained weight. My food cravings were terrible. Life wasn't worth living. Now I'm omnivorous and much happier. I eat 4-6 oz of meat a day. I've tested my ph in the Am and it's strongly alkaline and my fasting blood sugar is 70. Eating meat doesn't make you acid unless you eat too much. This is why heavy meat consumption has been linked to osteoporosis because the body must draw from the bone to offset the ph unbalance. The key is balance. I didn't down vote you FYI.


Thu, 01/17/2013 - 18:11 | 3164075 Praetorian Guard
Praetorian Guard's picture

You also have to eat more fats (healthy kind) to switch the body over to convert fuel from fats. Usually takes a few weeks, but you are correct on getting sleepy.

At the very least, I guess if you have to eat meat, its probably preferable to eat something you raise, though from my point of view it would be too hard to bring to slaughter, hey I'm an animal lover ;) - that would be preferable to industrialized, processed foods.

Thu, 01/17/2013 - 18:40 | 3164201 Miffed Microbio...
Miffed Microbiologist's picture

Yes, I dramatically increased my fats and a lot of my bad symptoms did diminish. I eat several tbsp of coconut (oil and butter) and nut oils a day. Funny thing was I lost weight when I thought the increase in calories would have an opposite effect. So much for the calories in calories out theory. Perhaps that's where I went wrong when I did the vegetarian stint. I'm an animal lover too! When we raised turkeys for thanksgiving I made them into pets against the advice of Mr Miffed ( don't play with your food!). Yes I left the property in tears when he and a friend started to slaughter. My only comfort was I had raised them humanely and they had a very happy life. It has gotten easier for me to do but it's still harder for me than my husband who was raised on a farm. Everyone should at least see one slaughter in their life times. The majority ofAmericans think meat comes from a cellophane package and that really separates one from the realities of life.


Thu, 01/17/2013 - 18:56 | 3164254 hooligan2009
hooligan2009's picture


Thu, 01/17/2013 - 18:10 | 3164071 NidStyles
NidStyles's picture

Whey is one type of protein. It's a fast metabolizing protein and tends to be fine for those with slow metabolic rates. The rest of us need something more long lasting of the Casein variety, which is only found in dairy and meat. Not to mention then number of people that require higher levels of Creatine and other nutrients found only in meat. Various Amino Acids and the sort.

Thu, 01/17/2013 - 18:06 | 3164049 TWSceptic
TWSceptic's picture

A paleo based diet is actually much healthier and better tasting as well. Peanuts are not that great actually. Do some research, you may be surprised.

Thu, 01/17/2013 - 17:26 | 3163909 eddymunster
eddymunster's picture

Oh look at those precious creatures! What's in the pot?

Thu, 01/17/2013 - 17:30 | 3163920 walküre
walküre's picture

Good for you. I like the taste of Rabbit meat but the wife and kids are very defensive of their pets. Thankfully they're less concerned with the creatures on the hoof and there's so many of them that they can't keep track when and where they disappear.

Thu, 01/17/2013 - 17:41 | 3163968 Bunga Bunga
Bunga Bunga's picture

Isn't growing own food in the backyard completely un-American? The real patriot drives on his 2.5 ton truck 20 miles for a burger.

Thu, 01/17/2013 - 17:49 | 3163990 AGuy
Thu, 01/17/2013 - 20:10 | 3164490 Shigure
Shigure's picture

HH, you forgot to mention that rabbits produce pretty good fertilizer too!

Thu, 01/17/2013 - 17:03 | 3163821 Atlantis Consigliore
Atlantis Consigliore's picture

100 Yen to Dolla,  Bonzai

400 Yen to Dolla, Bonzai!

people old people japan eating dogfood...Bonzai

here in US Lost Decade, Next.  Obamazai!!!

Thu, 01/17/2013 - 17:07 | 3163836 fonzannoon
fonzannoon's picture

good for Japan. it's like they say if u try hard enough and put enough effort in you will attain your goals.

Fri, 01/18/2013 - 02:08 | 3165381 FoeHammer
FoeHammer's picture

Ha! That's great.

Thu, 01/17/2013 - 17:09 | 3163842 daccord
daccord's picture

drums that shook the castle walls 

Thu, 01/17/2013 - 17:09 | 3163844 jeff314
jeff314's picture

Bukkake time for Japan people...

Thu, 01/17/2013 - 17:09 | 3163845 LongSoupLine
LongSoupLine's picture

Uhhh sorry, that's not inflation because Ben says it's not in CPI.



Fuck you Central Banks.




Thu, 01/17/2013 - 17:10 | 3163848 djsmps
djsmps's picture

What is the chain weighted CPI substitute for gasoline?

Thu, 01/17/2013 - 17:18 | 3163866 busted by the b...
busted by the bailout's picture


Thu, 01/17/2013 - 17:19 | 3163872 madcows
madcows's picture

Bio-Fuel.  We all drive around smelling like french fries.

Thu, 01/17/2013 - 17:20 | 3163882 PhD
PhD's picture


Thu, 01/17/2013 - 17:10 | 3163850 q99x2
q99x2's picture

Banksters. What vile creatures they are.

Thu, 01/17/2013 - 17:13 | 3163856 busted by the b...
busted by the bailout's picture

Let's see,

if the currency falls, prices rise, and then the economy is screwed.

if Ben stops printing, interest rates rise, and then the economy is screwed.

if the economy improves, interest rates will rise and oil go up, and then the economy is screwed.

if Ben continues to print, oil and other commodities go up, and then the economy is screwed.

if sequestration kicks in or they otherwise cut spending, then the economy is screwed.

if they raise taxes more to reduce the deficit, then the economy is screwed.

How is this supposed to work out again?  I forget...

Thu, 01/17/2013 - 17:28 | 3163916 Mentaliusanything
Mentaliusanything's picture

That is way to simple

It's an algorithm - Ben understands how it works, so stop your worry. The Mans is a genius and has been recognised as such by Krugman.

Ben's got your back so bend over while he rubs his hairy chest over it

Thu, 01/17/2013 - 17:34 | 3163937 walküre
walküre's picture

What's 85 billion divided by 300 million Americans?

Send that money to the people only once and see what will happen. No, can't do that can we? How are GS and the cabal supposed to "earn" their billions in compensation at the end of the day?

We've tried everything else. So why not give it a chance. Just once.

Fuck Ben Shlemiel Bernanke

Thu, 01/17/2013 - 17:19 | 3163874 fonzannoon
fonzannoon's picture

85 bil a month and Ben is a slacker. who knew.

Thu, 01/17/2013 - 17:20 | 3163881 Squid Vicious
Squid Vicious's picture

Kind of like a slow-motion Pearl Harbor in the fiat war... Ben get topside and man the printing gun, pronto!

Thu, 01/17/2013 - 17:22 | 3163893 debtor of last ...
debtor of last resort's picture

Good for the Japanese car industry. Electric cars for domestic use as for export. A glow in the dark: the Toyota Fuku-e. Hurry up oldtimer, your government needs your backup.

Thu, 01/17/2013 - 17:32 | 3163921 moonstears
moonstears's picture

So about $5.75 USD per gallon...is my math correct?

Thu, 01/17/2013 - 17:49 | 3163992 Bunga Bunga
Bunga Bunga's picture

roughly $6.32/gal (https://www.google.com/search?q=150+%2F+89.9+*+3.78541178) as of today.

But that's DIRT CHEAP.

In Europe you pay almost eight bucks.

Thu, 01/17/2013 - 17:37 | 3163953 Bunga Bunga
Bunga Bunga's picture

But in Japan everything comes with free nuclear fuel. Hedonic regression bitchez!

Thu, 01/17/2013 - 18:01 | 3164034 TWSceptic
TWSceptic's picture

Good, now they can finally have a vibrant and dynamic economy like the US and print themselves to prosperity. /s



Thu, 01/17/2013 - 18:04 | 3164051 de3de8
de3de8's picture

Coming to a neighborhood near you soon.

Thu, 01/17/2013 - 18:27 | 3164086 THE DORK OF CORK
THE DORK OF CORK's picture

Perhaps to afford LNG & Heavy fuel oil for its thirsty power plants it must cut back on non life support stuff such as car travel.








The Jap Nuke Crisis has knocked the LNG world for six.

With UK - normally the second biggest consumer shifting to American coal in a very BIG way.

Thu, 01/17/2013 - 18:17 | 3164092 The Heart
The Heart's picture

Over and above the table tops of props, herein there be the greatest of blessings to embrace.



In the real world, we are ALL One!

That's how it goes...

Thu, 01/17/2013 - 18:33 | 3164168 linrom
linrom's picture

We wonder how long the Japanese people will last until they say enough with this inflationary experiment, and kick Abe out on hopes of a prompt return to deflation.


Lol. Is this a joke, or what?

Thu, 01/17/2013 - 19:28 | 3164353 yogibear
yogibear's picture

Yep, the Yen looks like it's crashing....

Next in line the US dollar.....

The US dollar goes off the cliff and Bernanke and the Fed  lets it happen. 

They want the US dollar to crash. Their trying everything they can to crater the US dollar.

Someone say the US wasn't a deadbeat?


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