Based on this assumption, the timing of the yearon-year rate of change in the CPI reaching around 2 percent – the price stability target – is projected to be during fiscal 2017. Thereafter, the year-on-year rate of change in the CPI is likely to be around 2 percent on average.
In the near future, we will have to assess how the forces that are driving prices today can influence the outlook for price stability in the medium term and help durably stabilise inflation around our goal. The economic recovery will help support domestic price pressures. Indeed, the upswing is continuing at a moderate, but firming pace, and is broadening gradually across sectors and countries.