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Wednesday, 17th February 2010
In Business In Japan,

Japan reveals inflation target

The Japanese government and central bank has set a new inflation target in a bid to getting the country out of its current situation, which has seen it struggle with deflation.

Speaking in parliament yesterday (February 16th), Japanese finance minister Naoto Kan said that the country will aim for domestic prices to increase above one per cent each year.

"Whether or not a rate of one per cent is enough, we believe that we should set a policy target around there. I think there is a shared view [between the government and the Bank of Japan] that the target is around there," he said.

The governor of Japan's central bank Masaaki Shirakawa said that he is serious over tackling deflation but also warned that beating the problem is likely to be time consuming.

Recent figures show that in quarter four of 2009, the Japanese economy saw growth of 1.1 per cent, which is higher than many analysts predicted.

Written by Mark Smith.