By region, for example, the proportion of spending on utility costs in Hokkaido, Tohoku, and Okinawa is known to be higher than the national average on a yearly basis. Therefore, the inflation rates that households in these regions face have been relatively higher under the current circumstances as well.
Some researchers such as Michael Woodford, a highly renowned US-based researcher, even puts it as follows, “Not only do expectations about policy matter, but, at least under current conditions, very little else matters.” Even if one does not share this view absolutely, inflation expectations are undoubtedly a crucial measure of a central bank’s performance and its credibility.