For this reason, in formulating the latest Outlook Report, the Bank focused on examining the reasons for these sluggish price developments and their outlook. In what follows, I would like to present the contents of the report and talk in more detail about the price situation in Japan. A. Why Is the Bank Aiming at 2 Percent Inflation?
Before explaining the background to the continued relatively weak developments in prices, I will first talk about the reasons why the Bank is aiming at achieving the price stability target of 2 percent.