13 15 17 19 21 sources : bank of japan ; cabinet office. chart 3 i. the bank's monetary policy conduct for the time being consumer prices in japan, the united states, and the euro area japan united states y / y % chg. euro area y / y % chg. april : + 8. 3 % energy < 7 % > energy < 7 % > services < 50 % > services < 63 % > goods < 40 % > temporary factors goods excluding automobiles < 21 % > automobiles < 9 % > cpi ( less fresh food ) < 100 % > cpi < 100 % > april : + 2. 1 % 3 - 1 - 1 - 1 - 2 - 2 - 2 - 3 cy 16 energy < 11 % > goods < 47 % > hicp < 100 % > - 3 cy 16 may : + 8. 1 % services < 42 % > - 3 cy 16 y / y % chg. notes : 1. figures for services include administered prices. 2. figures for temporary factors for japan are staff estimates and consist of mobile phone charges and the effects of the consumption tax hike, policies concerning the provision of free education, and the " go to travel " campaign, which covers a portion of domestic travel expenses. 3. figures in angular brackets show the share of each component. figures for temporary factors for japan include mobile phone charges ( weight : 3 % ). 4. figures for 2022 / q2 for japan and the united states are for april, while those for the euro area are april - may averages. sources : ministry of internal affairs and communications ; haver. chart 4 i. the bank's monetary policy conduct for the time being long - term government bond yields and the bank's jgb holdings long - term government bond yields % the bank's jgb holdings 600 tril. yen japan united states germany tril. yen introduction of qqe introduction of outbreak of ycc covid - 19 - 1 cy 12 cy 12 amount outstanding ( left scale ) change from previous year ( right scale ) sources : bloomberg ; bank of japan. chart 5 ii. toward achieving the price stability target of 2 percent in a sustainable and stable manner price change distributions in japan and the united states japan ( pre - pandemic ) united states ( pre - pandemic ) share of the weight of items, % goods services 60 share of the weight of items, % september 2019 energy september 2019 - 10 - 8 - 6 -

pandemic,'" boj reports and research papers, may 2022, https : / / www. boj. or. jp / en / research / brp / ron _ 2022 / ron220523a. htm /. of inflation were observed on wages or inflation expectations. 2 in fact, inflation at that time was mainly driven by cost - push factors, such as rises in energy prices and prices of automobiles, which were strongly affected by supply - side constraints. however, contrary to initial expectations, the inflation rate in the united states since then has accelerated significantly. there are two reasons for this. first, the labor force participation rate has not recovered sufficiently, mainly due to vigilance against covid - 19. second, while economic growth continues to be robust, prices overall have been pushed up by strong aggregate demand in addition to supply factors. in this situation, labor market conditions have been tightening, as seen in the ratio of job openings to total separations recording a historical high of around 2 recently. given the rise in inflation, workers have been requesting higher wages, and this has led to a further rise in services prices, including housing rent. therefore, in order to contain wages and prices from spiraling upward, the federal reserve raised its policy interest rate by 0. 25 percentage points in march and 0. 5 percentage points in may, and it has been communicating that ongoing increases in the rate will be necessary. basically, these monetary responses by the federal reserve are expected to also contribute to stability in the global economy through steady developments in u. s. economic activity and prices. however, amid concern in global financial and capital markets over elevated inflation and acceleration in the pace of policy interest rate hikes in the united states, some have pointed out risks posed, for example, by significant adjustments in risk asset prices, such as stocks, and capital outflows from emerging economies. it is necessary to pay close attention to how these risks will evolve. in the euro area, the rate of change in consumer prices has also seen a significant increase lately. the headline inflation rate has exceeded 8 percent and the rate excluding energy has been above 4 percent. since the area has strong economic and geographic relations with ukraine, energy prices have risen further while uncertainties over the economic outlook for example, at the jackson hole economic policy symposium last summer, federal reserve chair powell explained in detail what the fed considered to be reasons for the rising inflation at that stage and the appropriate