Japan’s Motegi: CPI is flat, but output gap and wages are improving

Japanese Economy Minister Motegi is on the wires now, via Reuters, offering his afterthoughts on Japan’s latest inflation report.

Key Points:

CPI is flat, but output gap is improving and wages have been rising for past 4 yrs

Expect BOJ to work to achieve price target

No change to stance that Govt will look at several factors to determine whether it can declare an end to deflation

Need to confirm that there is no risk of returning to deflation