I said earlier that the year-on-year rate of change in the CPI (excluding fresh food) after excluding the direct effects of the consumption tax hike has been hovering at around 1¼ percent. However, the rate of change including the direct effects of the consumption tax hike was plus 3.3 percent in June, which was as high as the rate of increase in December 1990.
Focusing on this point, some argue that it is not necessary to raise inflation further. However, it should be noted that the impact of the consumption tax hike on consumer prices is a “one-off” at the time of the hike, and the impact on the year-on-year rate of change in the CPI will disappear after one year.