BOJ Economic and Price Outlook (January 2026)

Japan’s Economic Outlook

Japan is expected to experience steady, moderate economic growth as global markets recover and domestic spending gains momentum. This positive trend is being fueled by supportive government initiatives and favorable financial conditions, which are helping to reinforce the cycle between rising incomes and increased consumer spending. However, the outlook also takes into account the potential impact of trade and policy decisions in various regions.

Meanwhile, the annual growth rate of the consumer price index (excluding fresh food) is anticipated to slow to below 2 percent during the first half of the year, largely due to the diminishing influence of previous food price hikes.