Capital Economics Says Japan's Economy Picking Up

The transcript discusses global economic trends, focusing on Japan's inflation challenges and the impact of monetary policy. It highlights the weak inflation in Japan, particularly in the service sector, and the lack of significant results from the Bank of Japan's policies. The discussion also covers the dynamics of price changes and the tight labor market, suggesting potential wage pressures and a possible rebound in inflation, though the 2% target remains distant.

What does the speaker suggest about the current state of inflation in Japan?

How has the service inflation changed recently according to the speaker?

What reasons does the speaker provide for the slowing of service inflation?

What impact does the speaker believe the labor market has on inflation?

What is the speaker's outlook on reaching the 2% inflation target?