Japanese economy no longer in deflation: BOJ deputy governor

October 19, 2017

TOKYO- The Japanese economy is no longer in deflation as consumer prices excluding fresh food and energy have been positive for years, Bank of Japan Deputy Governor Hiroshi Nakaso said in New York on Wednesday.

The year-on-year rate of change in the consumer price index excluding fresh food and energy "has been positive as a trend for about four years," Nakaso said in a speech at a seminar hosted by the Federal Reserve Bank of New York.

"This is the first time since the end of the 1990s that such positive developments are being observed in Japan," he said.

"We judge that the economy is no longer in deflation, which is generally defined as a sustained decline in prices," he said.

Nakaso also said controlling long-term interest rates is operationally feasible, citing the Japanese central bank's experience over the past year. Jiji Press