At the same time, however, the resulting negative income effect will reduce the demand for imports and other goods and services, which, in turn, will exert downward pressure on the prices of imports and other goods and services. For example, if gasoline prices rise, you may try to drive less or reduce your purchases of other products.
A clear relationship between the yen-dollar exchange rate and the year-on-year rate of change in consumer prices can only be observed in the short period after the introduction of QQE (Chart 17). This suggests that current inflation has not been brought about merely by the depreciation of the yen.