Japan may increase rise in prices of various consumer goods in the coming days and the economy may come out of deflation in the coming year. This was reported by Bank of Japan and it stressed that its monetary policy may help the economy.

Japan is experiencing a decline in the prices owing to weak demand which had forced Bank of Japan to take remedial actions. The bank also experienced political pressure to stop the declining prices.

The bank stressed that it is considering various steps to increase the supply of money to private financial institutions and businesses to aid the pace of economic growth. It also raised its economic outlook and expected the economy to fare positively in the coming months.

It also expects GDP figures to improve in the coming fiscal. It has already forecast that Japanese economy is on a path of recovery. Japanese Government is also expected to announce various measures to aid the economy in June, according to reports.

It is stressed that for the economic growth to gather momentum, consumer spending and demand has to rise. Apart from spending, increasing incomes can also help increasing spending levels.

Other economic indicators are also turning positive which can help the economy stage a turnaround in the near future. Reports have confirmed that customer confidence is at its highest level since 2007.