The first is what will contribute to determining our reaction – that is, the set of factors that will affect inflation the most at our medium-term policy horizon[22]. At the global level, the most significant of these factors are energy prices, simply because lower energy prices are crucial for current inflationary pressures to unwind.
As for the indicators for capturing the underlying trend in the CPI, the rate of change in the trimmed mean decreased after the turn of the year, reflecting a decline in such items as those related to energy (electricity as well as manufactured and piped gas charges) and those related to travel (hotel charges and charges for package tours to overseas), both of which have large weights in the CPI, and it has been at around 0 percent recently.