Whether the rate of increase in the underlying inflation rate, which the Bank of Japan focuses on, has reached 2% will be the focus of this month's Outlook Report. Officials believe it is highly likely to indicate that the 2% level has been reached.
Underlying inflation is an important factor when the Bank of Japan decides whether to raise interest rates. Ahead of the monetary policy meeting on the 29th and 30th of this month, the focus will be on whether the rate of increase in underlying inflation has reached the 2% target.
According to officials, this month's Outlook for Economic Activity and Prices (Outlook Report) is highly likely to indicate that the rate of increase in underlying inflation has reached 2%.