Key facts
- Japan has not yet met the conditions to officially declare an end to deflation, Economy Minister Minoru Kiuchi said.
- The government will consider various factors to ensure Japan does not revert to periods of persistent price falls.
- Kiuchi's remarks were in response to questions about potential signals from the Bank of Japan regarding its 2% inflation target.
Economy Minister Minoru Kiuchi stated on Friday that Japan has not yet reached the necessary conditions to officially declare an end to deflation. He emphasized that the government's decision would involve considering various factors to prevent a return to persistent price declines. Kiuchi's comments came in response to reporters' questions about media speculation that the Bank of Japan might indicate its 2% inflation target has been met at its upcoming policy meeting. In a separate event on Thursday, Kiuchi stressed the importance of the Bank of Japan's independence in monetary policy decisions and stated that Japan is transitioning towards a new, growth-oriented economy, encouraging global investors to assess the country based on its current reality rather than past perceptions of deflation.