Inflation generally refers to the phenomenon of a overall rise in prices. This usually occurs when the economy is active and investment and consumption increase as a result of demand exceeding supply.

Recently, Kazuhide Ueda, the Governor of the Bank of Japan, attended the House of Representatives Budget Committee and stated his views on the Japanese economy and upcoming price increases. Governor Ueda said that we are in a state of inflation, not deflation, and suggested that price increases will continue.

Speaking about the future of prices, Governor Ueda said he expects the upward trend to continue as it did last year. Further, he predicted the same upward trend to continue until 2023 for price movements after 2024.

From these remarks, it is clear that the Bank of Japan intends to maintain inflation and continue promoting economic activity. Balancing the maintenance of healthy economic growth with price rise control is expected to be an important issue for the Bank of Japan.