Business · Economy · 4 hrs ago
Bank of Japan says underlying inflation has reached its 2% target
The Bank of Japan says Japan’s underlying inflation has reached 2%, its target, 13 years after it was set.
The announcement came after a policy meeting in Tokyo on October 30, with inflation pressures strengthened by high oil prices and a weak yen.
The bank distinguishes underlying inflation from price rises caused by temporary factors, which have pushed consumer prices above 2% at times since 2022.
Japan spent years battling deflation, and the bank only ended its exceptional monetary easing in spring 2024.
Now, the bank plans to keep raising interest rates to limit further price increases.
The shift matters because higher prices are squeezing household budgets, while government spending measures such as tax cuts and fuel subsidies could add to demand.
The editorial argues the government should reconsider expansionary spending and coordinate its approach with the bank to curb inflation and pressure on the yen.
The Bank of Japan said Japan’s underlying inflation rate had reached its 2% target, 13 years after the target was set.
Governor Kazuo Ueda said on Oct. 30 that the central bank would continue raising interest rates amid risks of higher inflation.
The milestone comes as rising prices have squeezed household budgets and a weaker yen has added to price pressures.
Mainichi argues the government should rethink expansionary fiscal measures, including consumption tax cuts and gasoline subsidies.
The articles say the challenge is to keep inflation stable around 2% while coordinating fiscal and monetary policy.
- Who
- The Bank of Japan, led by Governor Kazuo Ueda, announced the target had been reached.
- What
- Japan’s underlying inflation rate reached the BOJ’s 2% target.
- When
- The BOJ announced this on Oct. 30, 2026.
- Where
- Japan.
- Why
- The BOJ said the underlying rate had reached its target; rising prices and risks of further inflation were also central concerns.
This story does not have two clearly opposing sides.
The Bank of Japan set its 2% inflation target.
Russia’s invasion of Ukraine triggered a surge in resource prices, according to Mainichi.
The BOJ ended its unprecedented monetary easing.
Ueda said the underlying inflation rate had reached the 2% target and indicated that rate rises would continue.
- Inflation target
- 2%
- Time to reach target
- 13 years
- Policy rate
- 1.25% at the time of Toyo Keizai’s report
- Target set
- 2013
- Announcement
- Oct. 30, 2026
2 sources
What people are saying
One milestone we have been aiming for for a long time
I thought the 2% target would never be achieved for all eternity. It is a surprise that this day has arrived.