The year-on-year rate of change in the CPI excluding fresh food, which was minus 0.5 percent in March 2013, immediately before introducing the QQE, subsequently turned positive and has risen to around 1¼ percent excluding the direct effects of the consumption tax hike (Chart 6). The determinants of the underlying trend of prices are the output gap and inflation expectations.
It is incumbent on financial institutions to devote resources to stamp out these practices, and on regulators to reinforce the importance of this goal through supervision and enforcement. Second: Look for opportunities to support a vibrant and thriving economy for the benefit of everyone. This means seeking out opportunities to invest in low- and moderate-income (LMI) communities, small businesses, and community infrastructure.