Provided that these adjustment costs are substantial, stability in nominal exchange rates is desirable. 12  Bank is focused on achieving its price stability target of 2 percent and maintaining the inflation rate at that level in a stable manner in Japan.
Reflecting rises in energy and commodity prices, Japan's CPI for all items excluding fresh food, or the "core CPI," also has seen an increase in its rate of change recently. However, the core CPI is not the only price indicator the Bank looks at in deciding its policy measures, and the rises in energy and commodity prices may even be transitory.