Although wholesale prices have logged their highest rise in almost seven years and Japan's economy logged an annualized growth rate of more than 6 percent in the first quarter, some experts are skeptical that the nation is winning its long battle with deflation.
The experts say the current economic recovery is likely to lose steam in the latter half of this year, and the recovery will not be strong enough to inflate prices in the near future.
"The current economic recovery has peaked," said Kazuhiko Sano, managing director at Nikko Citigroup Ltd.'s fixed income department.