According to Japan's Kyodo News Agency, Japan** is considering deflecting its deflation officially due to rising import costs driving inflation and the prospect of sustainable wage growth.
For many years, Japan has been in a vicious cycle of low prices, low corporate profits, and low wages. At the same time, household consumption has also stagnated.
According to the sources, the end of deflation may be announced through statements by Prime Minister Fumio Kishida or cabinet members, as well as statements in the monthly economic report.
The Bank of Japan has implemented unprecedented monetary easing measures over the past decade aimed at bringing Japan out of deflation. This approach by the Bank of Japan achieved its 2% inflation target. Bank of Japan Governor Kazuo Ueda recently told parliament that Japan is "in inflationary mode", suggesting that the Bank of Japan is likely to remove negative interest rates and end its ultra-loose monetary policy this spring.
Some Japan** believe that the declaration of deflation is only a matter of formality, because even now the official position of Japan** is that Japan is not in a state of deflation.