Finally, in my view, given that QQE was already expanded in October 2014, a temporary reduction in the core CPI inflation is acceptable as long as the underlying price developments and recovery process in domestic demand continue. Nonetheless, the timing of a rate of inflation approaching around 2 percent now entails greater uncertainty, including the possible delay from the Bank’s latest forecast. III.
Overview of inflation expectations in Japan  A. Underlying price developments  Earlier, I mentioned that the Bank regards underlying price developments as having remained unchanged despite a fall in actual inflation rate. Here, I will first explain more clearly what the Bank means by underlying price developments.