Inflation is an important element of an economic recovery in Japan, but it must be driven by the right factors if it is to be beneficial, according to Masaaki Shirakawa, the outgoing governor of the Bank of Japan (BoJ).

Delivering his last speech as governor, Shirakawa said a number of factors could allow the BoJ to hit its 2% inflation target, for example from rising import prices, rising wages, higher inflation expectations and higher growth expectations. Of the drivers of inflation, Shirakawa