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"The BOJ can provide as much money as it wants, but that won't help end deflation"
- Norio Miyagawa, a senior economist at Mizuho Securities Research & Consulting
Japanese wholesale prices increased more than expected in November due to higher energy costs, but strong yen and sluggish domestic demand suggest the nation's economy will continue to struggle with deflation.
"Costs for oil, kerosene and energy are pushing up prices, but now oil prices are edging lower and Japan's economy is sluggish," said Norio Miyagawa, a senior economist at Mizuho Securities Research & Consulting.
"The BOJ can provide as much money as it wants, but that won't help end deflation. We have to take measures to close the output gap by easing regulations to encourage more corporate activity."