Yen depreciaton and domestic demand recovery to help BOJ to reach its target

The BoJ stresses that inflation is strengthening as a result of yen depreciation and domestic demand recovery which is also putting upward pressure on food costs. However, this will still not be enough to reach the BoJ's 2% price stability target on a sustained basis.  

In other words, the BoJ sees it as difficult to capture the whole picture of inflation by merely looking at "core CPI" (ex fresh food) which includes falling energy prices and the same for "core core CPI" which excludes food and energy. 

"However, even such a view would not alter the BoJ's commitment to achieve the 2% target. The 2% target is a firm objective, as it was decided by not only the BoJ but also by PM Abe's LDP, which won voters' confidence in the general election in December 2014", says Societe Generale.