Bank of Japan considers declaring underlying inflation has reached 2 percent target

The Bank of Japan is considering declaring that the country's underlying inflation rate has reached around 2 percent, according to sources. The central bank may express this view as early as October 30 in its quarterly Outlook for Economic Activity and Prices report, following a two-day policy meeting starting October 29. Companies are increasingly passing on higher costs to consumers, bringing the BOJ's 2 percent inflation target within reach. Governor Kazuo Ueda had earlier said the underlying rate is more or less reaching 2 percent. The bank will monitor whether the rate stabilizes around this level.