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BOJ Gov. Haruhiko Kuroda
Economy

New housing may stand in way of Japan's inflation target

Central bank faces new headache, this time in rental market

KEIDAI SANDA, Nikkei staff writer | Japan

TOKYO -- With rents falling in Japan on a surge in construction of apartments, the Bank of Japan may have run into yet another obstacle in its quest to achieve a 2% inflation rate.

In its regional economic report for January, the central bank focused on housing investments across the country. Because new housing can ramp up demand for durable goods, for example, such investments serve as a key economic indicator. The findings were rather grim.

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