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12 Nov 2025
Japan's Takaichi: We cannot say that Japan has emerged from deflation
Japan Prime Minister Sanae Takaichi said on Wednesday that we cannot say that Japan has emerged from deflation. Takaichi further stated that she hopes for Bank of Japan (BOJ) to conduct policy so that Japan sees sustainable achievement of price target.
Key quotes
Recent inflation driven by food prices, could hurt the economy.
Will work closely with BOJ to ensure Japan sees inflation driven by wages.
Hopes for BOJ to conduct policy so that Japan sees sustainable achievement of price target.
With the wrong policies, there is a risk Japan can slide back into deflation.
And that will then hurt consumption, wage growth, and capex.
The government's job is to create an environment where firms can continues with strong wage hikes.