However, it also should be noted that a temporary increase in prices will not improve the performance of firms or quality of people’s lives, as you can easily see in the case where crude oil price hikes are transmitted to general prices, and we certainly do not wish to see such a situation materialize.
The bottom line is that it is important to realize desirable inflation rates in proper sequencing so that improvement in economic activity leads to a rise in prices in a natural manner. Efforts toward Strengthening Growth Potential Strengthening growth potential is an extremely difficult challenge for Japan, especially given the constraint it faces – namely, the rapid aging of the population.