Japan moves close to beating 15 years of falling prices

Japan moves close to beating 15 years of falling prices

Japanese consumer prices have risen at the fastest pace in five years, showing government policies to end its deflation problem may be taking effect.

Core inflation excluding food rose 1.2% in November from the previous year, surpassing market expectations.

Japan is now more than half-way towards meeting the central bank's goal of achieving 2% inflation by about 2015.

This has been due to a massive monetary stimulus policy aimed at weakening the currency and spurring more spending.

Bank of Japan (BOJ) Governor Haruhiko Kuroda said earlier this week that policymakers have been looking to break the country's "deflation equilibrium".

Japan has faced nearly two decades of stagnant growth and falling prices because companies and households have held off on spending, based on the assumption that prices will not rise.

"The BOJ's monetary policy differs from that of other central banks in that it focuses on changing public expectations," Mr Kuroda said on Wednesday.

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