The underlying rate of inflation is closely watched in the Bank of Japan's monetary policy decisions, which take a comprehensive view of price trends after excluding temporary factors from the CPI published by the Ministry of Internal Affairs and Communications.
The underlying rate of inflation is an indicator that the Bank of Japan closely watches when making monetary policy decisions, as it captures price trends after excluding temporary factors such as the impact of higher crude oil prices. The CPI published by the Ministry of Internal Affairs and Communications is important in this respect.
The Bank of Japan makes an overall assessment by reviewing a range of indicators, including the CPI excluding items with particularly large price movements and surveys of households' and companies' views on prices.