MNI BRIEF: BOJ's Himino Sees Inflation; Decision Up To Govt

Bank of Japan Deputy Governor Ryozo Himino said Friday that Japan is currently experiencing inflation, judging from the recent rise in consumer prices, but whether the country has escaped from deflation will ultimately be decided by the government.

Himino told lawmakers that underlying CPI inflation is rising moderately toward the 2% target.

He also said the weak yen is pushing up consumer prices through higher import costs and corporate pass-through.

Finance Minister Satsuki Katayama, speaking on the same panel, said Japan is halfway toward achieving stable and sustainable price increases accompanied by wage growth. She added that it is not yet time to conclude that Japan will never return to deflation. (See MNI POLICY: BOJ's Tightrope Walk Complicates Rate Strategy)