If we can reverse the deflationary mindset and economic entities started behaving based on the premise that prices will rise moderately, the exact opposite would happen; that is, a virtuous cycle would arise in which firms’ sales and profits increase and wages also rise. What the Bank is aiming to achieve is this kind of virtuous cycle.
So even though our policy target is specified as a medium-term average of overall CPI inflation, we use the trimmed mean measure in our forecasting because it strips out extremes on both the high and low sides, and it doesn't presume where the noise comes from.