31. On a more optimistic note, the report said the risk of Japan falling into a deflationary spiral has receded. 32. That means Japanese companies are churning out large numbers of goods for a population less eager to buy them, setting up a dangerous deflationary spiral. 33. The BOJ also said that downward pressure on prices is continuing, raising fears of a deflationary spiral. 34. This year, however, the economy has slipped deeper into a deflationary spiral. 35. A second supplementary budget for the fiscal year to March would prevent Japan from tipping into a deflationary spiral, said Takenaka. 36. A key economic minister said the government has taken measures to avoid falling into a deflationary spiral. 37. But Japanese unemployment figures for December are expected to rise, threatening to push the economy into a self-reinforcing deflationary spiral. 38. The central bank governor also said that the chances of Japan entering a deflationary spiral had now receded. 39. The Japanese government must spend more to sustain the flagging economy as it threatens to tip into a deflationary spiral, the ruling party policy chief said Wednesday. |