Thus, it should be noted that the definition of the forecasts of the majority of the Policy Board members in the April Outlook Report is different from that in the July Outlook Report. 4. Figures for CPI include the effects of the October 2019 consumption tax hike and policies concerning the provision of free education. Source: Bank of Japan.
Chart 7  CPI and Output Gap Output gap  CPI 2.0  y/y % chg.  8  %  reversed, DI ("excessive" ‐ "insufficient"), % points  Capital input gap (left scale) Labor input gap (left scale) Output gap (left scale) Tankan factor utilization index (right scale)  ‐40  1.5  6  1.0  4  ‐20  0.5  2  ‐10  0.0  0  0  -0.5  ‐2  10  ‐4  20  CPI (all items less fresh food and energy)  ‐6  30  12  ‐8 CY2007 08 09 10 11 12 13 14 15 16 17 18 19 20  40  -1.0 -1.5  CPI (all items less fresh food)  -2.0  CY20 11  13  14  15  16  17  18  19  20  Notes: 1.