6  Chart 7  Inflation Expectations and Wages Japan 6  United States  y/y % chg.  5 4  6 Base pay increase Medium- to long-term inflation expectations  y/y % chg.  5 4  CPI (all items)  3  3  2  2  1  1  0  0  -1  -1  Base pay increase  -2  -2  Medium- to long-term inflation expectations  -3 CY 95  00  05  10  15 16  -3 CY 95  CPI (all items) 00  05  10  Notes: 1.
Figures for the CPI in Japan are adjusted to exclude the estimated effects of changes in the consumption tax rate. 2. Figures for the medium- to long-term inflation expectations are the expectations for the CPI 6 to 10 years ahead and are based on the "Consensus Forecasts."