That said, further recovery in growth and inflation expectations of firms and households is necessary to achieve the price stability target of 2 percent. The Bank will closely examine whether this recovery can intensify the virtuous cycle in the overall economy. D. Price Developments Let me touch on price developments before moving on to the next topic (Chart 9).
The rebasing of the consumer price index (CPI), which is conducted every five years, took place last month, and the year-on-year rates of change since this spring were revised downward by about 0.7 percentage points. This is mainly because a reduction in mobile phone charges made a further negative contribution with the rebasing.