Kathmandu. Japan’s inflation has reached the 2 percent target set by the central bank after more than 13 years, according to the Bank of Japan. The bank has confirmed that inflation is in line with the target after a long effort to pull the economy out of deflation, i.e. the continuous decline in the prices of goods and services.

Japan has struggled for decades with a steady decline in prices and the negative impact it has had on economic growth. To end this, the Bank of Japan adopted a comprehensive monetary easing policy in 2013 and set an inflation target of 2 percent.

The bank has confirmed for the first time that although core consumer inflation has sometimes risen above the target since the early 2020s, the long-term price trend is in line with the 2 per cent target. According to the bank, inflation based on the basic consumer price index (CPI) has generally reached a level that matches the price stability target of two per cent and is expected to remain around it in the coming days.

Meanwhile, the bank decided to keep the key interest rate unchanged at 1.25 percent with eight votes in favor and one against. The US central bank, the Federal Reserve and the European Central Bank, also decided not to change interest rates this week.

In Japan, however, officials expect interest rates to rise in December as inflationary pressures mount. Japan’s core inflation rose to 2.1 percent in September, up from 1.7 percent in August, according to government data released last week.