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Ex-BOJ deputy governor says improving labour productivity behind Japan's low inflation
[TOKYO] Former Bank of Japan Deputy Governor Hiroshi Nakaso said on Tuesday that increased work force participation and an improvement in labour productivity were among key factors keeping Japan's inflation seemingly low.
"Labour productivity in Japan ... is improving quite steadily in recent years. Meanwhile, real wages are also rising but not catching up with the improvement in labour productivity," Mr Nakaso said in a seminar hosted by the International Monetary Fund in Tokyo.
"Along with increased labour-force participation, improvement in labour productivity is an important factor underlying Japan's seemingly low inflation," he said.