Wage growth has increased somewhat, but domestic cost pressures still remain subdued overall. Underlying inflation in the euro area is expected to continue to rise gradually over the medium term, supported by our monetary policy measures, the continuing economic expansion, the corresponding gradual absorption of economic slack and rising wage growth.
Having said that, in general terms, it may not be an appropriate policy for Japanese firms to convert to a combination-type structure. That is because, that case might lead to abandoning the strength Japanese firms have accumulated, in addition, to be forced to compete in terms of costs with firms in emerging economies.