CPI excluding Food & Energy y/y reflects changes in prices of goods and services purchased by households in Japan. The index estimates the price change in the given month compared to the previous month from the consumer's point of view. The calculation includes goods and services that characterize household expenditure, but does not include taxes or social insurance premiums. Food and energy prices have been excluded from the index due to the high volatility.

This index is used to measure inflation and economic development in the country.

Growth exceeding expectations is seen as a plus for Japanese Yen. The CPI is a time-series measure of price fluctuations, including prices of goods and services purchased by households nationwide. In other words, the consumption structure of the household is fixed at a fixed value, and the indicator reflects changes in spending for the fixed consumption, which are connected with price fluctuations.

The weight of each item used in the index calculation is based on the results of the household survey conducted by the Ministry of Internal Affairs and Statistics Bureau. Item prices are the retail prices surveyed by the Retail Price Survey conducted by the Statistics Bureau. The results are used as the basis for various economic measures and pension revisions.