The Bank of Japan held a monetary policy meeting on 30 October and decided to keep the policy rate unchanged. In its statement, the wording concerning the "underlying inflation rate" changed from "approaching 2%" to "being at a level broadly consistent with the 2% price stability target."
The BOJ kept its policy rate unchanged, as markets had expected. The wording on the underlying inflation rate in the meeting statement was revised, shifting from language that clearly indicated the prospect of reaching 2% to wording that it was at a broadly consistent level. This has been interpreted as indicating that the policy stance has been reorganized to some extent in a direction differing from its previous explanation.
Core CPI, excluding fresh food, rose 3.2% year on year in September, reaching its highest level in 3 years. The index excluding fresh food and energy also rose 2.7%, while the core index excluding food, excluding alcoholic beverages, and energy reached 2.4%, bringing inflation close to its previous peak again.
Japan's inflation rate surged from 2022 and peaked in the 4% range in early 2023. It then remained around 2% during 2024, but has begun to trend higher again. It has now remained at around or above 2% for more than 4 years.