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Japan's Inflation Has Been Above Target for over 3 Years, but Where Is the BOJ?

  • Japan's inflation has remained above target for over three years, but the Bank of Japan considers the inflation spike temporary and will not alter its policy rate.
  • Kazuo Ueda, BOJ Governor, stated that rising import costs and rice prices mainly drive consumer inflation around 3%.
  • Yujiro Goto from Nomura indicated that food inflation is primarily due to supply issues rather than strong demand.
  • Frederic Neumann from HSBC noted that the BOJ has faced long-term deflationary pressures and several episodes of false dawns that prompted premature tightening.
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Japan's inflation has been above target for over 3 years, but where is the BOJ?

"The BOJ faces a tough, narrow path ahead," says Frederic Neumann, chief Asia economist at HSBC.

·United States
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Mises Institute broke the news in on Tuesday, June 24, 2025.
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