At its monetary policy meeting on 30 October, the Bank of Japan announced that the inflation rate had reached the 2% level. However, a review of actual consumer price index results from the Ministry of Internal Affairs and Communications indicates that a different indicator was used to determine that 2% had been reached.
At its monetary policy meeting held on 30 October, the Bank of Japan explained, with the support of all members, that the underlying rate of increase in consumer prices was at a level broadly consistent with its 2% price stability target. At a press conference, Governor Kazuo Ueda (植田和男) said that the focus of policy had shifted from pushing inflation up to 2% toward stabilizing it around 2%.
Actual results for the Ministry of Internal Affairs and Communications' consumer price index have at times exceeded 2% in the past, suggesting that the current assessment that 2% had been reached may not rely solely on this index. The Bank of Japan, however, maintains its view that underlying price increases will continue and will use that view as a premise for future monetary policy operations.
The Bank of Japan explained that the assessment that 2% had been reached reflected the unanimous view of the Policy Board and a policy shift from pushing inflation up to 2% toward stabilizing it. The specific implementation of its outlook is expected to be reaffirmed depending on future meetings and data.