Japan is “no longer in a deflationary period”, said Prime Minister Shinzo Abe in a New Year’s message that clashes with recent data showing inflation running close to zero.
Mr Abe’s remarks highlight his eagerness to produce results for the Japanese public, with his Abenomics stimulus now entering its fourth year and upper house elections due in the summer.
But by declaring Japan is on its way out of deflation Mr Abe risks making it harder to launch extra stimulus should the economy take a turn for the worse.
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