Thereafter, with the economy continuing to recover, it is projected to accelerate again moderately, although it will take time. This acceleration is likely to be mainly due to tightening supply and demand conditions in the economy and a rise in wage growth, which I will touch upon later.
In the Outlook Report, the year-on-year rate of change in the CPI (all items less fresh food) is projected to be 3.0 percent for fiscal 2022, and then fall below 2 percent for fiscal 2023 and 2024, being 1.6 percent and 1.8 percent, respectively.