Given the fast pace of changes in the structure of the economy in the face of deregulation, liberalisation, and competitive forces, it is important that the various indices such as WPI or IIP, which attempt to capture the underlying developments in the economy, are refined and updated on a continuous basis to provide timely information to the policymakers.
Japan suffered from deflation from the latter half of the 1990s, that is, preceding the global financial crisis, but under quantitative and qualitative monetary easing, dubbed QQE and introduced in April last year, Japan appears to have finally embarked on a path toward overcoming deflation.