Japan Sets 1% Inflation Target

Confirming its pledge to deal with the country’s chronic deflation, Japan’s finance minister announced a policy target of 1% growth for 2010. Bank of Japan governor Masaaki Shirakawa confirmed the Central Bank’s agreement stating that the Bank was “serious” about addressing deflation.

The announcement came on the heels of December’s growth report showing that consumer prices fell another 1.2 percent – the largest single-drop since the Consumer Price Index was first tracked in Japan beginning in 1970.

Source: BBC News

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