> European Central Bank Decides on a 0.25% Interest Rate Hike, First Increase in 2 Years and 9 Months June 11, 2026, 21:26 (Updated June 12, 2026, 00:21) — NHK
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1. The Real Culprit Behind the Current Inflation
Attributing the global inflation since 2022 primarily to the Ukraine War (2022) or Iran's military operations (2026) is an extremely superficial analysis.
The overwhelmingly more important factor is that China, which for many years provided the advanced Western economies with exogenous imported deflation, has now become a source of prolonged exogenous imported inflation.
Around the time of the Iraq War (2003), China supplied long-term imported deflation by mass-producing inferior goods (cheap copy products) through the extensive use of migrant laborers ("nongmingong") from inland regions who were willing to work almost without limit at subsistence-level wages.
Consequently, even when WTI crude oil futures on the NYMEX surged to nearly US$150 per barrel in 2008—higher than current levels—the deflationary mindset in Japan remained largely unchanged.
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> European Central Bank Decides on a 0.25% Interest Rate Hike, First Increase in 2 Years and 9 Months
June 11, 2026, 21:26 (Updated June 12, 2026, 00:21) — NHK
---
1. The Real Culprit Behind the Current Inflation
Attributing the global inflation since 2022 primarily to the Ukraine War (2022) or Iran's military operations (2026) is an extremely superficial analysis.
The overwhelmingly more important factor is that China, which for many years provided the advanced Western economies with exogenous imported deflation, has now become a source of prolonged exogenous imported inflation.
Around the time of the Iraq War (2003), China supplied long-term imported deflation by mass-producing inferior goods (cheap copy products) through the extensive use of migrant laborers ("nongmingong") from inland regions who were willing to work almost without limit at subsistence-level wages.
Consequently, even when WTI crude oil futures on the NYMEX surged to nearly US$150 per barrel in 2008—higher than current levels—the deflationary mindset in Japan remained largely unchanged.
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