22 September 2004, 09:36  BOJ's Iwata says CPI to rise if growth hits 4%

Bank of Japan (BOJ) Deputy Governor Kazumasa Iwata said on Wednesday he expects the core consumer price index (CPI) to start rising at the end of 2004 if the Japanese economy grows at a pace of four percent in the year to next March. "I think the Japanese economy will grow at a faster pace than its potential growth in the second half of this year ... and that trend will continue in fiscal 2005/06," he told reporters after meeting business leaders in Sapporo, northern Japan. He also said that in order to avoid falling back to deflation after prices start rising, a rise of one percent in the core CPI would be needed. Earlier, he said he had expected consumer prices to start rising in mid-2004 but there had been a delay in the upward movement in prices.///

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