According to the latest figures released, Japanese consumer inflation rose 1 per cent during the month of November for the first time in five years.

The increase shows that the Japanese economy might be able to achieve the central bank's target of 2 per cent inflation through monetary stimulus package for the world's second largest economy. The BOJ said in the Japanese capital that it will purchase 7 trillion yen or $74 billion of bonds every month. He is aiming to reach 2 per cent inflation in two years as part of the plan to reverse the trend of falling prices in more than 15 years in the world's third largest economy.

The Japanese currency has fallen to new low levels against the dollar following the announcement of more stimulus measures from the Bank of Japan, which will help exporters and boosts repatriated earnings.

Some analysts have raised doubts over the possibility that the economy will meet the Bank of Japan's (BOJ) ambitious target of 2 per cent inflation by April 2014. Weak Yen is helping push up inflation but it is not sure if the inflation will rise to 2 per cent in the coming months.