First, “price stability” is a state where economic agents such as households and firms may make decisions regarding economic activities without being much concerned about the fluctuations in the general price level. Second, central banks should pursue “price stability” over the medium to long term that should not be judged by short-term developments in the recent period.
Third, “price stability” should be expressed in numerical terms using indicators that cover goods and services consumed by households and represent the public’s true feelings regarding price developments. This basic thinking had been explained to the public before the introduction of “the price stability goal in the medium to long term”, and has not changed with this introduction.