Under these circumstances, a positive inflation rate has taken hold, and wage growth has also been positive on average, albeit with fluctuations. Thus, Japan's economy is no longer in deflation, in the sense of a sustained decline in prices.
However, we have not yet reached a situation where the price stability target of 2 percent has been achieved in a sustainable and stable manner, accompanied by wage increases. As background to this current situation, the Bank's Assessment for Further Effective and Sustainable Monetary Easing in March last year highlighted the following factors.