BoJ Governor Kazuo Ueda told parliament today that Japan’s inflation is gradually aligning with the central bank’s 2% goal, supported by improving wages and steady domestic demand. He reiterated the BoJ aims for moderate inflation accompanied by rising incomes and economic improvement, rather than price gains driven solely by import costs or temporary shocks.
Ueda noted that while demand for food and other non-durable goods has softened, household consumption remains resilient thanks to higher incomes and a tight labor market. He highlighted that stronger wage growth is helping sustain a moderate cycle of rising prices and pay—an essential precondition for durable inflation in the BoJ’s framework.
He added that underlying inflation—stripping out volatile components—is gradually accelerating toward the 2% target, driven not only by food but also by price increases across a broader range of goods and services.
“When we look at underlying inflation that strips away temporary factors, it is gradually accelerating toward our 2% target,” he said.
