Regarding the CPI for April, an issue of key interest has been whether firms have been able to pass on the consumption tax hike by raising sales prices in line with the tax hike, and the index for Tokyo, which is released ahead of the nationwide index, suggests that this is indeed the case.
BIS central bankers’ speeches  3  The Phillips curve Let me summarize this price rise mechanism in terms of the Phillips curve, which illustrates the relationship between the output gap and inflation. This relationship is shown in Chart 8, with the red dots representing the four positions observed over the past year.