Chart 2 indicates the rate of change in prices  BIS central bankers’ speeches  1  with and without the effects of the consumption tax hikes.1 The output gap is expected to follow a moderate improving trend (Chart 3).
Moreover, as a tightening of labor market conditions is expected to become evident, nominal wages are likely to see gradual upward pressure (charts 4 and 5). In addition, some indicators suggest a recent rise in medium- to long-term inflation expectations (Chart 6).