Japan may declare end to deflation in September: report

0 Comments | AFP, August, 2006

TOKYO (AFP) — The Japanese government may declare the economy has finally escaped the shackles of years of deflation in September, a report said, citing unnamed government sources. The Cabinet Office is considering making the announcement in its regular monthly economic report, the Yomiuri Shimbun newspaper said.

With consumer and commodity price-linked indices steadily rising over the past several months, the announcement is aimed at summarising Prime Minister Junichiro Koizumi's economic policies and their achievements, the report said. Koizumi will step down in late September after five-years in office. In recent months, data has shown consumer prices rising steadily in Japan as the economy recovers but the latest figures, for July, disappointed, showing a gain of just...