30 May 2006, 13:20  Yosano: No Need To Get Worked Up Over Deflation Now

Yosano's comments Tuesday as well as other recent ones indicate he thinks prices are on solid ground and that it's okay for the central bank to make a rate move soon. He also brushed aside the view that the government and the BOJ ought to use a "core-core" CPI. As part of their debate over prices and the proper course for monetary policy, internal affairs minister Heizo Takenaka continues to disagree with Yosano. Friday, Takenaka, noting the only 0.2% increase in the April CPI excluding energy and fresh food, reiterated that slight prices declines continue and that using the "core-core" was the best way to evaluate price trends.

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