Japan sees signs of turning point in decades-long battle with deflation
Fox News
Japan's prolonged struggle against deflation may be reaching a pivotal moment, with both rising prices and wages indicating a potential shift, according to the government on Tuesday.
"Japan has seen price and wage rises broaden since the spring of 2022. Such changes suggest the economy is reaching a turning point in its 25-year battle with deflation," the government said in its annual economic white paper.
"We shouldn't dismiss the fact a window of opportunity may be opening to exit deflation," as inflation perks up and public perceptions about persistent price declines abate, it said.
The report stopped short of saying Japan has fully eradicated the risk of deflation returning, pointing to a "still moderate pace" of increase in services prices.