The year-on-year rate of increase in the consumer price index (CPI) after excluding the direct effects of the consumption tax hike is likely to be around 1¼ percent for some time, and reach around 2 percent in or around fiscal 2015 (Chart 4). Developments in prices and the Bank’s monetary policy Let me next talk about developments in prices.
The year-on-year rate of increase in the CPI (excluding fresh food) in April and May this year, after excluding the direct effects of the consumption tax hike, registered plus 1.5 percent and 1.4 percent, respectively. Inflation remains on a moderate upward trend even after the consumption tax hike. Recently, there has been considerable focus on the monthly figures for the CPI.