According to CoinMeta, economist Kento Minami from Yamato Securities stated that given the weak economic growth data released on Monday, it is unlikely that the Japanese government will announce that Japan has officially emerged from deflation for the fiscal year ending March 2027. The Koizumi Yoshihiko government previously indicated that it would closely assess whether the Japanese economy is strong enough to avoid falling back into deflation before officially announcing the end of deflation. The market is highly concerned about the timing of the government's announcement of the end of deflation, as this may affect the government's attitude towards further tightening of monetary policy by the Bank of Japan. Minami also noted that the fundamentals of the Japanese economy are improving, and key indicators such as inflation rates, output gaps, and unit labor costs also suggest that the risk of Japan falling back into persistent deflation is low.