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Yellen warns price increases are causing global ‘stagflationary effects.’


The Akihabara district in Tokyo. Japan’s economy shrunk in the first three months of the year, largely because of rising Covid case numbers, the war in Ukraine and supply chain problems.Credit…Noriko Hayashi for The New York TimesTOKYO — Last December, after two years of stop-and-go growth, Japan’s economic engine seemed like it might finally be revving up. Covid cases were practically nonexistent. Consumers were back on the town, shopping, eating out, traveling. The year 2021 ended on a high note, with the country’s economy expanding on an annual basis for the first time in three years.But the Omicron variant of the coronavirus, geopolitical turmoil and supply chain snarls have once again set back Japan’s fragile economic recovery. In the first three months of the year, the country’s economy, the world’s third largest after the United States and China, shrank at an annualized rate of 1 percent, government data showed on Wed …

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