Ministers in Japan dispute reports that the government is considering ending deflation

Top government ministers in Japan refuted a media story claiming Tokyo is thinking about ending the country’s deflation, saying instead that officials are concentrating on making sure the economy doesn’t go back to a long period of declining prices. After decades of economic stagnation, Japan’s fourth-largest economy is now considering declaring an end to deflation in response to rising prices, according to a report from Kyodo News over the weekend. The Bank of Japan is expected to leave its ultra-easy policy settings soon, according to mounting market bets. The weekend report cited persons with knowledge of the situation.

 

Yoshitaka Shindo, the minister of economy, stated that the government was not considering ending deflation at this time. According to him, the government will work to keep wage growth in Japan above inflation in order to prevent the economy from returning to a period of protracted price falls. Shunichi Suzuki, the minister of finance, mirrored the economic minister’s opinions. “I am aware of the media article stating that we may declare deflation to be over. However, the information is untrue,” Suzuki said reporters following a cabinet meeting.

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