The Bank of Japan predicts that CPI will gradually move towards the inflation target

The Bank of Japan has made its latest assessment of the inflation outlook. Central Bank Governor Kazuo Ueda said that potential inflation and core CPI increases are expected to gradually rise in the second half of the forecast period and eventually reach levels consistent with the central bank’s price stability target. This statement reflects the Bank of Japan’s new judgment on price trends.

The core content of inflation forecasting

According to Kazuo Ueda, Japan’s CPI performance will show a gradual upward trend. Unlike sudden jumps, this gradual rise in inflation is seen as more in line with the characteristics of stable economic operation. The central bank expects core price indicators to gradually move closer to the price target set by the central bank in the second half of the forecast period.

A new stage of inflation control in Japan

This forecast marks a new phase in the Bank of Japan’s inflation control. Underlying inflation continues to rise, gradually pushing Japan’s price level into the target range approved by the central bank. The recent stable performance of CPI data provides practical support for this forecast, indicating that market price expectations are moving closer to the central bank’s policy direction. With this forecast, the Bank of Japan is sending a clear signal to the market that inflationary pressures are under control and are developing according to the expected trajectory.