The Bank of Japan remains committed to achieving the inflation target of 2%, said the head of the Japanese Central Bank, Haruhiko Kuroda (photo), at a meeting with representatives of the business federation Keidanren, the most powerful business lobby in Japan. He stated that the Bank of Japan remain determined to do everything necessary to cope with deflation.
The head of the Japanese Central Bank noted that core inflation, which excludes prices of energy and fresh food, remained positive in October 2013, which means 25 months in a row.
"For the first time since the 90s, the inflation is so stable", - stated Bloomberg quoting Kuroda.
However, the consumer price index, excluding the cost of fresh food but taking into account the energy costs, fell in October for the third month in a row - by 0.1%.
The November inflation data will be released in Japan on December 25. According to estimates of experts surveyed by Bloomberg, the consumer price index, excluding the cost of fresh food, in the last month has not changed.
"I would like to emphasize that the Bank of Japan aims not simply on positive inflation, but rather tends to a combination of growth in consumer prices, improving corporate profits and increasing employment and wages," - said Mr. Kuroda.
Inflation at 2% can be supported only if there is an adequate income growth of the population, he added.
According to Kuroda, the program of quantitative easing (QE) implemented by the Central Bank significantly changed the economic trend in Japan.
"Corporate profits are at record high levels. Labour market conditions remain difficult; however, wages have started to rise, albeit at a moderate pace - he said. - Implementation of QE has allowed Japanese businesses and consumers to move away from a deflationary mindset, and we are already seeing active investments of some companies in some sectors of the economy. "
As previously reported, in December, the Bank of Japan held a meeting, which resulted in a decision to keep the monetary policy unchanged.