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Japan's Inflation Has Been Above Target for over 3 Years, but Where Is the BOJ?

  • Japanese CPI inflation is currently at 3.4 percent, remaining unchanged since 2023, according to recent data.
  • Real wages in Japan decreased for the fourth consecutive month in April as inflation outpaced pay raises, highlighting wage sluggishness.
  • The Bank of Japan raised rates to 0.5 earlier this year, where they have remained since.
  • Political pressure to control inflation is likely influencing the central bank's stance on monetary inflation, leading to rising yields.
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Japan's inflation has been above target for over 3 years, but where is the BOJ?

"The BOJ faces a tough, narrow path ahead," says Frederic Neumann, chief Asia economist at HSBC.

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Mises Institute broke the news in on Tuesday, June 24, 2025.
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