The Bank introduced quantitative and qualitative monetary easing (QQE) in April 2013 with the aim of overcoming deflation that has lasted for about 15 years. Thereafter, QQE has been exerting its intended effects, and Japan’s economic activity and prices have improved markedly.
The underlying trend in inflation, as I will explain later, has continued to be of improvement, although the year-on-year rate of increase in the consumer price index (CPI) has declined, due in particular to the effects of the substantial decline in crude oil prices since last summer, and recently has been about 0 percent.