Moreover, developments in commodity prices -- including crude oil prices, which have continued to increase -- also could be risks to the outlook (Chart 2). This is because excessive rises in commodity prices could lead to a rise in firms' expenses for materials, while sudden drops may bring about market turmoil. B.
Current Situation and Outlook of Japan's Economy I will now discuss the economic situation in Japan. Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating.