Description
The Consumer Price Index (CPI) in Japan is published by the Statistics Bureau of Japan, measuring the average price changes of goods and services purchased by households nationwide.
The CPI is a crucial indicator for the Bank of Japan (BOJ) to assess inflation and economic health, significantly influencing its monetary policy decisions.
Japan's CPI is presented in three different forms:
1. CPI (All items): Includes all goods and services.
2. Core CPI: Excludes fresh foods, which are subject to significant price volatility, providing a clearer view of the underlying inflation trend. The BOJ targets a 2% inflation rate based on this index.
3. Core-core CPI: Further excludes energy in addition to fresh foods, eliminating the most volatile components to provide a more accurate reflection of consumer prices.