BOJ Sees Core Inflation Near 2% From Fiscal 2025 Despite Near-Term Slowdown

The Bank of Japan said in a report released 31 July that underlying consumer inflation is likely to stall in the near term as economic growth cools, but should pick up again thereafter. The central bank projects that during the second half of its forecast horizon—covering fiscal years 2025 through 2027—core inflation will stay at a level broadly consistent with its 2% price-stability goal, even though it currently remains below that mark. Governor Kazuo Ueda told reporters the underlying price trend is strengthening but could briefly weaken alongside slower growth before resuming its rise toward the 2% target.