First, the decline in demand following the consumption tax hike has been somewhat protracted in durable consumer goods including automobiles, as well as in housing investment. Second, crude oil prices have declined substantially after the summer.
These factors have contributed to slowing the CPI inflation rates, which had hovered in the range of 1.0–1.5 percent since the end of the last year, down to 1.0 percent in September. BIS central bankers’ speeches  7  Of the two factors, the temporary weakness in demand associated with the consumption tax hike has already started to wane.