Japan’s New Imperial Era Set to Begin

As Japan gears up to enter the new imperial era, Japan Inc’s expectations for inflation over the first year deteriorated, the Bank of Japan, on Tuesday, showed in a survey.

Companies and firms anticipate consumer prices to rise 0.9 percent within a year from now, and by an annual 1.1 percent within 3 years. They have also seen inflation at 1.1 percent five years from now.

“There were signs that some companies would raise prices from April, but this survey shows this will not be a consistent policy,” a senior market economist at Mitsubishi UFJ Morgan Stanley Securities said.

“The labor market remains tight, so our main scenario is for no additional easing, but the sales tax hike is a source of concern,” he explained further.

Core consumer prices, in February, increased an annual 0.7 percent, which was slower than the previous month’s 0.8 percent increase. Exports, in the same time frame, dropped for a third consecutive month.

The Japanese government is now looking into raising nationwide sales tax to 10 percent. This move is expected to generate extra revenue for rising welfare costs in the country.

Crown Prince Naruhito, the heir apparent to the Chrysanthemum Throne of Japan, is set to succeed his father, Emperor Akihito, on April 30. The current emperor will formally abdicate to end the 31-year Heisei era, and the new imperial era will be called “Reiwa”. The imperial era name, or the “gengo”, translates to “order” or “command”, as well as “peace” and “harmony”.

Many people were positive about the new chosen name, but to some, it may sound unappealing or distasteful. Some argue that the imperial era system is inconvenient unlike the Gregorian calendar, while others believe it goes against the idealism behind the postwar Constitution; that sovereign power is within the people, and not the royalty.

“Do they mean ‘Give in to orders?’ They probably want another militarist era,” said one Twitter user.

"The era system should reflect people's desire and we have to start from discussing why we need it," a professor at Kyoto University demanded.

The first round of trade talks between Japan and the United States are expected to be held on April 15 to 16 in Washington, and The Bank of Japan will conclude its policy meeting on April 25, just 5 days before the heir apparent assumes his new role.

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