(Bloomberg) -- The Japanese government is discussing officially stating that the country’s economy has overcome deflation, Kyodo reported Saturday, citing several unidentified people familiar with the matter.  

The government will consider making the statement after taking into account this year’s wage negotiations to check if pay is increasing in accordance with rising prices, according to the report. The proposal includes Prime Minister Fumio Kishida and other members of the cabinet publicly saying that the country has exited deflation at meetings and press conferences, as well as stating it in monthly economic reports, Kyodo reported. 

Markets are keeping close watch on the timing of the Bank of Japan’s next interest rate increase, which would be the first since 2007. BOJ Governor Kazuo Ueda said recently that the price target was not yet in sight and the central bank will continue to check “whether the virtuous cycle between wages and price began to turn.” 

Read more: BOJ’s Ueda Keeps Market Players Guessing Over Rate Hike Timing

Japan’s benchmark inflation exceeded estimates in January, with consumer prices excluding fresh food rising 2% from year earlier. It was the 22nd straight month in which inflation matched or exceeded the nation’s central bank target. Meanwhile, the nation’s labor market remained tight in the same month, keeping pressure on companies to promise solid wage gains in annual pay negotiations that are taking place with labor unions. 

The government will factor in the consumer price index and other major economic data in making a decision, according to the Kyodo report. 

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