Prime Minister Sanae Takaichi reaffirmed her commitment to evaluating key economic data before declaring Japan’s deflation exit. Speaking at a Budget Committee meeting on Tuesday, she stressed that sustainable price growth and steady wage increases must come first.
Takaichi explained that Japan’s deflation exit means prices must stop falling and remain stable. She acknowledged that prices continue to rise but said it is still too early to claim victory. Before making a final judgment, she intends to assess inflation trends, income levels, and the durability of wage growth.
Japan’s deflation exit has long been a central goal for policymakers. Persistent price stagnation has slowed growth and weakened consumer spending. Although inflation has recently ticked upward due to higher energy and food costs, economists argue that consistent wage increases are necessary for a genuine recovery.
Takaichi vowed to coordinate closely with the Finance Ministry, the Bank of Japan, and business leaders. She said policies must balance inflation control with economic expansion to secure long-term stability.
Beyond economic issues, Takaichi also addressed ongoing debates on electoral reform. She noted that one option involves following recommendations from a bipartisan parliamentary panel on lower house seat distribution. She emphasized the importance of building consensus between ruling and opposition parties to maintain fairness and public trust.
Takaichi further touched on possible legal reforms targeting sex work. She directed Justice Minister Hiroshi Hiraguchi to assess whether individuals who pay for such services should face penalties. Her instruction reflects growing concern over human trafficking and labor exploitation.
Japan’s deflation exit remains uncertain, but Takaichi’s remarks highlight a cautious and pragmatic economic stance. Analysts expect the government to keep monitoring inflation and wage growth into next year before making any declaration.
For now, the administration aims to ensure Japan’s deflation exit becomes not just temporary progress but a lasting transformation toward sustainable growth.
