Japan’s robust economic recovery this year could put an end to a deflationary spiral that has sapped growth for some 14 years, says the Organisation for Economic Cooperation and Development (OECD).
In its annual economic outlook, the OECD projects Japanese consumer prices will begin rising modestly by the end of this year, with the inflation rate reaching 2.4% by the end of 2014.
“Aggressive monetary easing could see deflation give way to moderately positive underlying inflation in Japan,” the report said.
In recession as recently as last year, Japan’s economy grew at an annual rate of 3.5% in the first three months of 2013, much quicker than the 2.7% expected by analysts.
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