Japan's Minister Minoru Kiuchi Says It Is Too Early to Declare an End to Deflation
TOKYO — Japan's Minister of State for Economic and Fiscal Policy, Minoru Kiuchi, said on October 23 that it is too early to declare an end to deflation, Reuters reported. Any such judgement, he said, must weigh the consumer price index, the GDP deflator and underlying inflation together rather than rely on a single indicator.
Japan's core consumer prices rose 2.1% year on year in September. The Bank of Japan holds its policy meeting next week, and markets expect the central bank to signal that underlying inflation is approaching its 2% target, with the policy path closely watched.
Under a 2013 joint statement, the government and the BOJ pledged to end deflation and achieve 2% price stability. Kiuchi's remarks show the government remains cautious about formally declaring deflation over and will keep watching the interaction between prices and wages.
Source: GSM · USA (original Chinese edition)
Photo: 东京日本银行总行 / Bank of Japan Headquarters, Tokyo。图片：© Wiiii / CC BY-SA 3.0，Wikimedia Commons
