In addition, for fiscal 2017, the downside risk is greater because there is considerable uncertainty at present related to subsequent declines in demand and in real income after the planned consumption tax hike.
It is not clear how much these negative impacts could be offset by a “quantitative” expansion of public- and private-sector fixed investment associated with the Tokyo 2020 Olympic Games, amid the tightened labor market conditions. III. Japan’s medium-term outlook for prices and risk assessment  Next, I will turn to the price outlook and risk assessment. A.