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BOJ still behind 2% inflation target as wages lag

Despite the end of deflation, and record govt stimulus and bank lending, price gains have yet to reach target

At issue is how to encourage companies and households to step up spending and be willing to borrow to fund investment - bringing an end to what Prime Minister Shinzo Abe calls a "shrunken mindset".


FOUR years after the Bank of Japan set a 2 per cent inflation target, price gains may still be coming up short, according to a survey of economists by Bloomberg News.

Consumer prices will rise an average 1.4 per cent the fiscal year through March 2017, after failing to reach