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Bank of Japan (BOJ): Japan's economy is expected to continue growing moderately, with CPI year-on-year growth significantly above 2% in the second half of fiscal year 2026
The Bank of Japan (BOJ) stated in its July 2026 "Outlook for Economic Activity and Prices" report that the Japanese economy is likely to continue growing moderately, albeit at a slower pace, supported by AI-related demand and government measures, but dragged down by rising crude oil prices due to the situation in the Middle East. The report projects that the year-on-year CPI growth rate could be significantly above 2% in the second half of fiscal year 2026, influenced by rising semiconductor prices, a weaker yen, and higher crude oil prices, and is expected to converge around 2% by fiscal year 2028.
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