This implies that the influence of supply-side factors could dominate the trends in CPI. Also, house rents comprise about 10 per cent weight in the new CPI. With house rents being largely imputed, there could be concerns about the efficacy of their measurement. These issues are not unique to us.
The direct effects of the October 2019 consumption tax hike on the CPI for fiscal 2020 are estimated to be 0.5 percentage point. In addition, based on a specific assumption, the direct effects of policies concerning the provision of free education on the CPI for fiscal 2020 are estimated to be around minus 0.4 percentage point.