Ella 
Japan’s price and wage gains have widened since the spring of 2022, the government said in its annual economic white paper published on Monday, changes that suggest the economy is at a turning point in its 25-year struggle against deflation.
The report said that should not lose sight of the fact that a window of opportunity to exit deflation may be opening as inflation picks up and public perception of continued price declines wanes.
In addition, the report mentioned that when determining inflation trends, attention must be paid to service prices, because service prices reflect domestic demand and wage levels more vividly than commodity prices.
Finally, the report concludes that the government must work closely with the Bank of Japan to achieve sustained wage growth.
Market Reaction
USD/JPY remained weak after the said report, trading around 146.30, down 0.12% on the day.
