Japan's CPI Excluding Fresh Food Shows Best Performance in Tracking Inflation
The Bank of Japan aims to achieve sustainable growth by maintaining stable prices. They analyze Japan's consumer price index to identify the underlying inflation trend by excluding temporary disturbances. The CPI excluding fresh food and 10-percent trimmed mean are found to be better at tracking inflation trends and predicting future inflation direction compared to other indicators. Monitoring various indicators, including the CPI excluding fresh food, helps to understand the nature and impact of disturbances on consumer prices.