The higher margins earned by firms through price rises could lead to wage increases and are expected to serve as a great catalyst for achieving the 2 percent price stability target. The third factor is the possibility of future energy prices remaining high. Increasing energy prices have contributed significantly to the recent rises in inflation rates abroad.
Likewise, higher energy prices account for about half of the recent rise in Japan's inflation rate, excluding factors such as the effects of the reduction in mobile phone charges. Future  5  developments in energy prices entail uncertainties; there may be a reversal in such prices at some point, causing the inflation rate to decline.