All of us revise our estimates as new pieces of the jigsaw emerge, and the fact that we have been revising down our own internal estimates is amply illustrated by the extent to which we have been willing to accept conditions very much weaker than envisaged in our projections. The last few months illustrate the point rather well.
Figures in parentheses for the GDP deflator and CPI for fiscal 2014 include the direct effects of the consumption tax hike. The CPI refers to all items less fresh food. Sources: Cabinet Office; Ministry of Internal Affairs and Communications; Bank of Japan.