However, closer monitoring is required of the risk of downward deviation of the economy, due to possible emergence of a profit squeeze and decline in real purchasing power, as the price of Middle Eastern crude oil, which accounts for a significant proportion of Japan's imports, has risen in the current situation unlike during the price hike last year.
In addition, as evident from continuing high price levels in the futures market, the possibility cannot be ruled out that expectations that crude oil prices will remain high may become more widespread.