T-Point Price Index for October 2019: After the consumption tax increase, the index for the first month fell 1.06 points from the previous month to 0.68% compared to the same month last year

2019.11.12 Press Releases
CCC Marketing Co., Ltd. / Culture Convenience Club Co., Ltd.

The largest increase was for women aged 60-79 at 1.13%, while the smallest was for women aged 20-39 at 0.02%.

The TPI measures prices excluding consumption tax (excluding tax), but is undergoing revisions to accommodate the consumption tax increase and the introduction of a reduced tax rate from October onwards. In the meantime, provisional figures are being published. In addition, there is a possibility that revisions will be made after the provisional figures are published. Thank you for your understanding. The revised TPI is scheduled to be published in the new year. For more information, please contact tpi-pj@ccc.co.jp.

CCC Marketing Co., Ltd. and Culture Convenience Club Co., Ltd., which operate a marketing platform business, have announced the "T-POINT Price Index" (hereinafter "TPI"), a price index that utilizes T-Point data, as part of a joint project with the Watanabe Tsutomu Laboratory at the Graduate School of Economics, The University of Tokyo. We are pleased to announce the TPI for October 2019. This will be the first announcement since the consumption tax rate was raised from 8% to 10%.

Digest of the T-Point Price Index for October 2019

The index for the first month after the consumption tax hike fell 1.06 points from the previous month to 0.68% compared to the same month last year.
TPI uses the amount of purchases made using T Cards at T Point partner stores such as supermarkets, drugstores, convenience stores, and restaurant chains. The TPI for October 2019 fell 1.06 points from the previous month to 0.68% compared to the same month last year, falling below 1%. By business type, "supermarkets" continued to rise by 0.34 points from the previous month to 0.88% compared to the same month last year, while "drugstores" fell by 0.32 points from the previous month to 1.50% compared to the same month last year. Additionally, for convenience stores, due to the tobacco tax increase in October 2018, prices had been increased by the amount of the price increase until last month, but starting this month, prices have been reduced by the amount of the price increase, resulting in a decrease of 3.42 points from the previous month and 0.75% compared to the same month last year.

The largest increase was among women aged 60-79 at 1.13%, while the smallest was among women aged 20-39 at 0.02%.
Looking at the TPI for October 2019 by gender and age group, in order of the largest increase compared to the same month last year, women aged 60-79 had a 1.13%, followed by men aged 60-79 at 0.84%, men aged 20-39 at 0.83%, men aged 40-59 at 0.76%, and women aged 40-59 at 0.66%. The smallest increase was for women aged 20-39 at 0.02%. Compared to the previous month, the number of cases decreased for both men and women of all age groups, with all age groups except those aged 60 to 79 and women falling below 1%. By business type, "supermarkets" saw an increase for both men and women and all age groups, but "drugstores" saw a decrease for all age groups. In addition, the price index for convenience stores for all age groups fell sharply due to last year's tobacco tax hike, and the price index for all age groups except for those aged 20 to 39 and women fell to the 0% range, a complete reversal from last month when it was in the 4% range.

*You can view data by selecting from three business types: "supermarket," "drugstore," and "convenience store."Please note that "restaurant chains" cannot be viewed by selecting by business type.
*Daily index data is up to three days prior.

What is TPI?
The Consumer Price Index (CPI) is known as an economic thermometer that indicates economic trends. On the other hand, the TPI is an index compiled based on purchase price data accumulated daily through T-Point partner stores across Japan. Specifically, this price index was derived by aggregating, tabulating, and analyzing purchase amounts obtained from T-Card purchasing data, which is used by 69.89 million people across Japan (number of members after name matching as of the end of September 2019) and has related sales of over 8 trillion yen, which accounts for approximately 2% of Japan's total consumption.

About TPI
The data currently used by TPI collects the amount of purchases involving T-Cards at T-Point partner stores such as supermarkets, drugstores, convenience stores, and restaurant chains. The store areas are as follows: supermarkets are mainly in the Tokyo metropolitan area and Kyushu, drug stores are mainly in the Kanto and Kansai regions, and convenience stores and restaurant chains are nationwide. Currently, the number of products (SKUs) covered by TPI is approximately 110,000, with 191 of the 580 items being utilized, resulting in a coverage of 23.4% when the Ministry of Internal Affairs and Communications CPI is taken as 100%. The amount used to calculate TPI is excluding consumption tax (excluding tax). Additionally, while no special consideration is given to sale items, all products with sales history for both the previous and current periods are used to compile TPI. Please note that the number of members covered by TPI, as well as the transaction amount and number of uses, have not been disclosed.

TPI Features
The features of TPI are that it allows you to see the price index by gender and age group, and that it is a price index based on buying prices rather than selling prices. The TPI is calculated using the Tornqvist method, which is the same as the University of Tokyo Daily Price Index. This calculation method places more weight on products purchased in larger quantities, and there is a consensus among researchers that it is the best method for creating a price index.

[Disclaimer]
*These results are from a beta version and may be subject to change without notice.
*This information is not intended for use in any investment or economic transactions, and no express or implied guarantees are made, including as to its commercial usefulness or usefulness for any particular purpose.
*Please fully understand the nature of this index and use it at your own risk.
*We are not responsible for any losses resulting from investments or transactions based on this index.
*We do not assume any liability (direct or indirect) arising from the use of this index.
*No representations or warranties are made regarding the accuracy, completeness, precision, reliability, etc. of this index.
*Reproduction of this content without permission is strictly prohibited.

Materials related to this matter

T-Point Price Index for October 2019: After the consumption tax increase, the index for the first month fell 1.06 points from the previous month to 0.68% compared to the same month last year

Inquiries regarding this matter
■ Inquiries regarding TPI
CCC Marketing Co., Ltd.
MAIL: tpi-pj@ccc.co.jp

■Inquiries from the press
CCC Marketing Co., Ltd.
Public Relations Officer: Ando and Nakagawa
TEL: 03-6800-4464