DESPERATE to convince consumers that inflation really is picking up, the Bank of Japan (BOJ) is taking advantage of a gradual rise in food prices, from yogurt and ketchup to “gyudon” beef rice bowls — once a symbol of Japanese deflation.

    With the main official gauge showing inflation stalling due to weak oil prices, the central bank has come up with its own index that conveniently shows inflation accelerating towards its 2 percent goal.

    The move underscores the emphasis the BOJ puts on the psychological effect of its massive money-printing program, which aims to banish public perceptions that falling prices will persist so that households and companies will start spending.

    It also highlights a growing reluctance within the central bank for expanding the radical stimulus it launched in April 2013.

    But the focus on rising food prices, due more to a weak yen than strong consumption, is a gamble as they could stall if increased grocery costs pinch households and dent broader domestic demand, analysts say.

    “The BOJ used to say it won’t make any excuse for missing its target. Now it’s doing just that,” said Hideo Kumano, a former BOJ official and currently chief economist at Dai-ichi Life Research Institute.

    “I wonder what it will do if food prices start to fall.”

    Persistent deflation can hurt an economy because it encourages consumers to hold off from spending, while businesses are forced to discount — symbolized in Japan’s years of deflation by the falling cost of the bowls of stewed beef and onions over rice that are a staple fast food nationwide.

    Japan’s key price measurement is the core consumer price index (CPI) released by the government, which strips away the effect of volatile food prices, such as vegetables, but includes other food prices as well as energy costs.(SD-Agencies)