C.  Relationship between wages and prices  Lastly, we often have been asked whether, in achieving the 2 percent “price stability target,” if only prices rise and wages do not, this might have a costly impact on people’s lives. In this regard, the Bank does not consider it sufficient if only prices go up.
With Japan’s economy growing in a well-balanced manner amid a virtuous cycle among production, income, and spending, the Bank aims to create a situation in which a gradual rise in the inflation rate is accompanied by an increase in employment and wages.