In particular, housing rent has declined at a moderately accelerated pace recently, and it is my view that this might possibly constrain the inflation rate. The fourth is the difference in the outlook for the effects of the yen’s depreciation. According to the baseline scenario, the observed inflation rate is expected to rise, due in part to the recent yen depreciation.
In this regard, I consider that, in light of the experience since 2013, although foreign exchange rates seem to have an increasing impact on inflation through import prices — reflecting structural changes such as the rise in import share of electrical parts that are used for the domestic production of electrical appliances — such rates will affect inflation for only a relatively short time and have a limited impact on the underlying trend in inflation.