FILE PHOTO: People walk on an overground walkway in Tokyo, Japan, March 20, 2023. REUTERS/Androniki Christodoulou/File Photo
TOKYO (Reuters) – Japan’s government is considering declaring an end to deflation in the wake of rising prices, Kyodo news agency reported, citing sources with knowledge of the matter.
The government will make a decision after determining whether annual labour-management wage talks due March 13 will turn out strong enough to offset price hikes and also consider the outlook on price trends.
If realised, it will mean Japan would break free from deflation that put a drag on economic activity for well over two decades, the sources said.
The government acknowledged that Japan’s economy was in deflation for the first time in 2001, with the nation struggling for much of the past two decades to break a vicious cycle of lower corporate profits, tepid wages and weak private consumption.
In judging an end to deflation, the government would scrutinises a broad range of indicators, such as consumer prices, unit labour costs, output gap and GDP deflator, Kyodo said, citing the sources.
(Reporting by Tetsushi Kajimoto; Editing by Shri Navaratnam)
News Related-
Google Pixel 8 Pro Review: Is this the best Android phone of 2023?
-
Namwater Dam Bulletin on Monday 27 November 2023
-
Dr Yunus appointed chair of Moscow Financial University's international advisory board
-
Victory over Nigeria puts Uganda on the brink
-
BoG holds policy rate at 30%, tightens liquidity measures
-
When sea levels rise, so does your rent
-
American International School CEO honoured as ‘Icon of Inspiration and Impact’
-
Sierra Leone prison breaks co-ordinated - minister
-
Address the rise of single parenthood
-
Hyundai Chief Picked as Auto Industry Leader of the Year
-
Unmarried People Under 35 Outnumber Married Ones
-
European interior ministers in Hungary to discuss migration
-
Japan on the watch for unlicensed taxis around Narita airport amid foreign tourism spike
-
ECOWAS to send high-powered delegation on solidarity visit to Sierra Leone