In the Bank’s projection released in July 2012, the median of the Policy Board member’s forecasts for the year-on-year rate of increase in the CPI (all items less fresh food) is 0.2 percent for fiscal 2012 and 0.7 percent for fiscal 2013.
C.  Risks to the baseline scenario  The baseline scenario for Japan’s economy described thus far is subject to both upside and downside risks. By far the most important risk is uncertainty regarding the outlook for overseas economies, and particularly the European debt problem.