Economics minister Heizo Takenaka suggested Friday that Japan may consider setting an inflation target as a way to fight deflation.

"We could draw a lesson from the experiences of Britain and other nations that set inflation targets, and some of them could be used in future discussions," Takenaka said during a press conference in London.

He also said Japan should change its tax system to promote investment rather than savings.

"We must move in the direction of supporting people who take the risk of undertaking challenges. Investment rather than savings must be given preferential treatment," said Takenaka, who was in London after paying a visit to the United States.