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If there is one chart showing the most pronounced country level stagflation of relevance, it's this one. Japan reported a nosebleed level of producer price inflation this morning - a 27 year high in fact.

At +7.1% year over year reported for the month of July, you can see where this registers on the chart below, particularly relative to Japan's newly realized negative industrial production growth rate.

I realize that Japan is "cheap", but countries with these dire fundamental underpinnings can get a lot cheaper as internally generated levels of cash flow erode.

*Full disclosure: I remain short Japan via the EWJ (etf) in my fund.
KM
Chart by Andrew Barber, Director