Japan is ready to announce the end of the inflation decline

reports

Although Japan’s inflation over the past three years above the 5 % target of the central bank has not yet officially announced the end of inflation in Japan. This phenomenon usually refers to a long period of recession associated with slow growth and reduced consumption.

Akazava at a news conference, referring to recent data showing that the Japanese production gap was positive in the last three months of last year, saying that all four main indicators were now used to evaluate the exit of Japan. He also added that the government hopes that the central bank will maintain a close relationship with the government and continue to pursue appropriate policies to achieve a 5 % inflation goal.
New government data showed that the Japanese production gap has been positive for the first time in the past six seasons in October to December. This indicates that due to increased demand, real production has gone beyond the full capacity of the economy.

three other indicators that the government considers to evaluate complete exit from inflation are the consumer price index, GDP reduction, and unified labor costs.

Japan’s central bank dropped out of a decade of widespread economic stimuli policies last year and increased interest rates to 4.9 percent in January, as the Japanese economy is on the way to reach a 5 % inflation target.

, however, the government has been cautious in announcing the official end of inflation, as this could eliminate the reasons for the continuation of financial support policies. Some analysts believe that the official announcement of the end of inflation could help the government gain political privileges before the House of Representatives in July.