Japan edging closer to ending deflation, pay hikes key: gov’t paper

Economy

Japan is making progress toward completely overcoming deflation as “positive developments” not seen before in the economy are emerging to support this view, the government said Tuesday.

A policy report analyzing the state of the economy emphasized the importance of sustained wage growth in establishing the foundation for Japan to officially declare an end to deflation, characterized by continuously falling prices, at a time when the Bank of Japan is widely expected to transition away from years of massive monetary stimulus.

The government highlighted several positive signs, including a proacti...

Kyodo News

Kyodo News