Japan Minister Says Deflation Era Over

Japan’s Economy Minister Minoru Kiuchi urged global investors to assess the country by its current conditions rather than its decades-long deflationary past, saying it is moving toward a growth-oriented economy. The government says inflation is near the Bank of Japan’s 2% target and wages are rising, and argues that strategic investment can boost productivity, incomes and tax revenue while maintaining fiscal discipline. Its growth strategy calls for more than 370 trillion yen in public and private investment by fiscal 2040, targeting areas including semiconductors, artificial intelligence, quantum technology and content industries. A U.S. Treasury official also said Japan no longer faces deflation and that its yen level and monetary policy should adjust to that change, while warning that sharp, disorderly currency moves can destabilize markets.