The year-on-year rate of increase in the CPI (all items less fresh food) for December 2015 was 0.1 percent but that for all items less fresh food and energy – which indicates the underlying trend in prices – was 1.3 percent.
The Bank projects that, in a situation where Japan’s economy is likely to continue growing at a pace above its potential, the year-on-year rate of increase in the CPI (all items less fresh food) will likely rise closer to 2 percent through fiscal 2017 when the negative contribution of energy items dissipates.