D.  Outlook up to fiscal 2015  As for the outlook, Japan’s economy is expected to continue with a moderate recovery as a trend, supported by an improvement in the employment and income situation, while it is expected to be affected by the front-loaded increase and the subsequent decline in demand prior to and after the consumption tax hike.
As for prices, the year-on-year rate of increase in the CPI, excluding the direct effects of the consumption tax hike, is likely to be around 1¼ percent for some time.