Wages need to rise to end deflation: Japan economics minister

TOKYO (REUTERS) - Japanese Economics Minister Akira Amari said on Friday that an end to deflation will become distant unless rises in prices are accompanied by an increase in wages.

"Japan is in the process of emerging from prolonged deflation," Mr Amari told a news conference after data showed Japan's core consumer prices rose 0.8 percent in August from a year earlier, the fastest pace of increase in nearly five years.

But he added that core-core consumer inflation, which excludes both energy and volatile food prices, must turn positive and stay that way, void of any sudden shock to the economy, for the government to say Japan has exited deflation.