Looking at developments in the DI for firms' output prices in the Bank's latest March 2022 Tankan to examine their price-setting stance, the DI has reached the highest level since 1980 (i.e., just after the second oil shock) for the manufacturing industry and the highest level since 1991 (i.e., the end of the bubble period) for the nonmanufacturing industry (Chart 10).
The predictability of future prices will be further reinforced as credibility in monetary policy becomes enhanced.