Thus, a rise in prices is the key to increasing medium- to long-term inflation expectations, and it is important that this brings about a change in the perception of firms and households regarding future prices.
E. Outlook for Prices in Japan Based on the three aspects that affect prices, the year-on-year rate of change in the CPI is likely to increase gradually toward the price stability target, as the effects of the current largescale monetary easing gradually permeate the economy.