The Tokyo Foundation for Policy Research


The Tokyo Foundation for Policy Research



New BOJ Index Enables More Detailed Analysis of Price Trends

In June of this year, the Bank of Japan introduced a new set of indexes to provide a fuller picture of price levels in Japan, breaking down fluctuations at four intermediate stages of demand, in addition to final demand.

In an article in the September/October issue of Japan Spotlight, Research Director Nobuo Iizuka notes that while year-on-year prices rose by 2.5% in April 2022 as a result of the sharp rise in imported food and energy costs and the rapid depreciation of the yen against the US dollar, this is still quite low compared to the 8% level in many Western countries.

The new BOJ indexes for final and intermediate demand (FD-ID price indexes) suggest that the reason for the more gradual rise in Japan is that the price of services remains low. Trends in service prices may thus prove to be a pivotal factor in determining future movements of consumer prices in Japan.

“New Indicators Emerge for Understanding Transmission of Price Changes,” Japan Spotlight

Profile of Research Director Nobuo Iizuka




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