Why Japan Experiences Deflation and How can it be solved

Increasing proportion of the population is pensioners, and pensioners have less money to spend (this means their spending power is lower).

The population of Japan is shrinking, making the demand even lower.

Inadequate number of foreigners receive a residence permit, so skilled foreign workers (most notably from China and southeastern Asia like Vietnam) aren’t allowed to work in Japan.

Retail stores (most notably large floor area discount and grocieries malls) constantly lowers their prices to increase their market share in the country, i.e.: consumers would buy products from them, not somewhere else.

This goes hand in hand with the above, fierce competition reason. The Japanese retail market is too fractured and divided up.

Japan should be more liberal in its trading policies. The country should allow more imports entering Japan.

Japanese people should learn more foreign languages, primrily english, mandarin (Chinese), and Korean.