Amazon effect: Online shopping pushing down core inflation, says BOJ

The spread of online shopping in Japan is dragging down consumer inflation, the central bank of Japan said, highlighting the “Amazon effect” on prices and the challenges policy makers face as they try to pull the world’s third-biggest economy out of years of stagnation. As bricks-and-mortar retailers lower prices to remain competitive with online shops, core consumer prices are being pushed down by 0.

1 to 0.2 percentage point, the Bank of Japan (BOJ) said in a research paper. Online retailers are able to charge.....

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