On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) is around 0 percent. For the next few months, it is expected to turn negative due to the reversal of the previous year’s movements in energy-related and durable consumer goods.
Thereafter, however, the year-on-year rate of change in the CPI is expected to start a moderate increasing trend as the aggregate supply and demand balance continues a moderate improving trend with Japan’s economy on a moderate recovery path.