Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The increase of the consumer price index

REPORTER: A number of economic indicators were announced today and I would like to ask a question concerning them. The February consumer price index, excluding perishable goods, shows a 1.3% increase, while the unemployment rate was down 0.1% from last month’s figures. Bearing in mind next week’s rise in consumption tax, how do you view these results?

CHIEF CABINET SECRETARY SUGA: Firstly, the consumer price index, excluding perishable goods, increased 1.3% compared to February of last year. That marks nine straight months of year-on-year increases, and I believe this demonstrates that the economy is no longer deflationary. We will finally raise the consumption tax and will work to ensure that we continue to steadily break out of deflation. Furthermore, we will keep a close eye on price changes.

REPORTER: While the consumer price index increased, it is believed that as a result of the heavy snow, real consumer expenditure actually decreased by 2.5% compared to the previous year. What effect do you think this will have given also that the tax increase is quickly approaching?

CHIEF CABINET SECRETARY SUGA: I assume that the recent heavy snowfall in the Tokyo Metropolitan Area had a significant impact.

(Abridged)