Japan Inflation Slowed More Than Estimated

In August, Japan's inflation slowed more than expected, with the core CPI rising only 3.1% year-on-year, below July's 3.3% and the projected 3.2%. The core CPI has been above 3% since April, influenced by a sales tax increase from 5% to 8%. Without this tax effect, inflation was just 1.1%, far below the Bank of Japan's 2% target. BOJ Governor Haruhiko Kuroda plans to continue easing policies to reach this target. Meanwhile, the yen's depreciation, reaching a six-year low, may increase import prices, affecting inflation.

What is the Bank of Japan's inflation target?

How has the value of the yen affected inflation in Japan?