in its annual economic white paper presented on Monday, the Japanese government said, "Japan has seen price and wage rises broaden since the spring of 2022,” adding that “such changes suggest the economy is reaching a turning point in its 25-year battle with deflation.”

"We shouldn't dismiss the fact a window of opportunity may be opening to exit deflation," as inflation perks up and public perceptions about persistent price declines abate,” the report said.

Further, it mentioned that "In determining the trend of inflation, it's important to look at services prices" as they reflect domestic demand and wages more vividly than goods prices.”

Finally, the report concluded that the government must work closely with the Bank of Japan (BoJ) to achieve sustained wage growth.