Indicators explained: what number is the Bank of Japan's 2% target?A promise to aim for prices rising about 2% a year
The Bank of Japan holds a Monetary Policy Meeting on October 29 and 30, and immediately after it ends the Outlook for Economic Activity and Prices (the Basic View) is released. The price stability target that underpins those judgements was set in a document published on January 22, 2013 as a 2% year-on-year rate of increase in consumer prices, to be achieved as early as possible. Here is which index that 2% refers to, and when the related releases appear.
- January 22, 2013The document setting the price stability target at a 2% year-on-year rise in consumer prices was published
- October 29 and 30, 2026Monetary Policy Meeting. Immediately after it ends, the Outlook for Economic Activity and Prices (the Basic View) is released
- Tuesday, November 10, 2026The Summary of Opinions for the October meeting is scheduled for release
- December 17 and 18, 2026The last Monetary Policy Meeting of 2026
- Wednesday, December 23, 2026The Minutes of the October meeting are scheduled for release
Key points
- The price stability target is a 2% year-on-year rate of increase in consumer prices. It was set in the document on the price stability target under the framework for the conduct of monetary policy, published on January 22, 2013
- The same document states that the target is to be achieved as early as possible. Price stability is positioned as contributing to the sound development of the national economy
- The October Monetary Policy Meeting is held on Thursday, October 29 and Friday, October 30. Immediately after the meeting ends, the Outlook for Economic Activity and Prices (the Basic View) is released
- For the same meeting, the Summary of Opinions is scheduled for Tuesday, November 10 and the Minutes for Wednesday, December 23. The last meeting of 2026 is on Thursday, December 17 and Friday, December 18
What to do in practice
- Check the outcome of the meeting in the material the Bank of Japan releases after it ends. Wait for that release before fixing any plan that depends on the outcome
- When someone speaks of prices at 2%, confirm which index is meant, consumer prices or producer prices, and that it is the year-on-year rate
- If you want to follow the reasoning behind a decision, note the release dates of the Summary of Opinions (November 10) and the Minutes (December 23)
The Bank of Japan aims for a state in which the prices of the things and services we buy are about 2% higher than a year earlier. This is called the price stability target, and it was decided and published on January 22, 2013. On October 29 and 30 a meeting is held to discuss the economy and prices ahead, and a document setting out the outlook comes out as soon as it finishes.
- ○Applies: Prices rising about 2% in a year
- ×Does not apply: Prices not moving at all (0%)
- ×Does not apply: Prices falling and falling
Points
- What is aimed at is a state in which the prices households pay, called consumer prices, are 2% higher than a year earlier
- This target was decided on January 22, 2013, and is to be achieved as early as possible
- A document on the outlook comes out right after the meeting on October 29 and 30, and what was discussed is also published on November 10 and December 23
What the words mean
- consumer prices
- the prices of the things and services households buy, gathered into one figure
- year-on-year
- how much something has changed compared with a year earlier, as a percentage
- Bank of Japan: Bank of Japan, The Price Stability Target
- Bank of Japan: Bank of Japan, Dates of Monetary Policy Meetings and release dates
Economic news presents published statistics and outlooks. It is not investment solicitation or trading advice. Figures are as of publication and may be revised.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.