Looks as if they lost battle against deflation: Japan’s Inflation Slows More than forecast.

(Bloomberg) — Japan’s inflation slowed more than forecast in January, highlighting central bank chief Haruhiko Kuroda’s challenge in reflating the world’s third-biggest economy.
Consumer prices excluding fresh food rose 2.2 percent from a year earlier, the statistics bureau said Friday. That was less than the median projection of 2.3 percent. Stripped of the effect of sales-tax increase last April, core inflation — the Bank of Japan’s key measure — was 0.2 percent.
While the tumble in oil prices will pull down inflation in the near term, underlying consumer price trends remain on track for the BOJ’s 2 percent goal, Kuroda said last week. Economists at BNP Paribas SA and JPMorgan Chase & Co. see consumer prices falling in the coming months.
“The BOJ will have to bolster stimulus as their price target remains too high,” said Kiichi Murashima, an economist at Citigroup Inc.
Twenty-six of 35 economists in a Feb. 5-10 Bloomberg survey forecast the BOJ will expand monetary stimulus by the end of October.