Japan’s key measure of price changes rose so slightly in July, lagging well behind gains in economic growth as the central bank struggles to spur significant improvement in inflation.
Price increases are still well below the Bank of Japan’s 2 percent target, even as the economy expands. The BOJ was forced tothe projected timing of meeting the objective for the sixth time at its July policy meeting, despite years of extraordinary monetary easing. Inflation minus fresh food and energy has been mostly flat. All this means that the BOJ is likely to continue with its stimulus while its counterparts in the U.S. and Europe look to wind back their programs.