At the same time, there will be other special factors placing upward pressure on consumer prices, so that the net effect remains uncertain. The Bank, however, thinks it unnecessary to change its view that the year-on-year change in the CPI is expected to remain positive in view of the gradual narrowing of the output gap.
Land prices on the whole continue to decline, but those in some parts of Tokyo and other major metropolitan areas have started to rise. These developments are notable as they suggest a gradual upturn in people's expectations regarding the future course of the economy. V. Challenges for the future: the declining population The Japanese economy continues to recover steadily, as I mentioned.