Prolonged deflation is on the verge of ending, the government said Thursday, while maintaining its upbeat assessment on the overall economy for the second straight month.
"Recent price developments indicate that the deflation is ending," the Cabinet Office said in its monthly economic report for August. The economy is "picking up steadily and shows some movements on the way to recovery."
Last month, Prime Minister Shinzo Abe's administration upgraded its view on the economy for the third straight month, using the word "recovery" for the first time in 10 months and claiming that deflation is "easing."