Japan Economy Minister Says Deflation End Not Yet Official

Economy Minister Minoru Kiuchi announced Friday that the Japanese government has not yet met the conditions required to officially declare an end to deflation. Kiuchi stated that the government will evaluate various factors to ensure the economy does not revert to persistent price falls before making a formal declaration.

These remarks follow media reports indicating that the Bank of Japan may signal during next week's policy meeting that underlying inflation has approximately reached its 2 percent target. The government's cautious approach suggests a desire for sustained stability before shifting its official economic stance.