Deputy Prime Minister: Japan is in deflation

Deputy Prime Minister Naoto Kan says the Japanese economy is in a state of deflation.

Kan told reporters on Friday that the government perceives the economy to be in a state of deflation, and prices could fall further to cause an economic downturn.

He said monetary measures play a key role in this kind of situation, hinting that the government will call on the central bank to take action.

Kan added that a Parliamentary Secretary of the Cabinet Office will attend a meeting of the Bank of Japan's policy board on Friday and convey the government's view of the current economic situation.

2009/11/20 12:36(JST)
(JST: UTC+9hrs.)