Bank of Japan's Iwata says consumer prices to increase along with wages

Bank of Japan Deputy Governor Kikuo Iwata Wednesday said consumer prices are likely to increase further along with wages.

"The year-on-year rate of increase in the CPI is expected to accelerate moderately, along with increasing wages, against the backdrop of rising inflation expectations as well as improvements in the output gap, given that Japan's economy is expected to continue growing at a pace above its potential," he said.

On monetary policy Iwata said, "the BoJ will continue to strive to pursue appropriate monetary policy measures on its own accord to achieve the price stability target of 2% at the earliest possible time."

The majority of the nine-board shared the view that Japan can achieve the 2% price stability target at around fiscal 2015.

The BoJ will review medium-term outlooks for real economic growth and inflation rates until fiscal 2016 at the Oct. 31 policy-setting meeting.