As for the outlook, exports are expected to increase moderately (1) as overseas economies are likely to continue recovering moderately, led mainly by advanced economies – the United States in particular – although there are risks such as the outcome of European debt problem, including the situation in Greece, and (2) on the back of the enhancement of competitiveness and somewhat of a shift back from overseas production to domestic production due to the yen’s depreciation.
Turning to price developments, the year-on-year rate of increase in the consumer price index (CPI, all items less fresh food, and the same hereafter) has been slowing, mainly reflecting the significant decline in crude oil prices since autumn 2014. The rate of increase for January 2015 – the latest figure available – was 0.2 percent.