However, with the ongoing adjustments, the balance between supply and demand in the domestic market is likely to exert downward pressure on prices. In addition, the declining trend of machinery prices caused by technological innovations, the decrease in prices of consumer goods arising from the streamlining of distribution channels, and the reduction in communications charges aided by deregulation will continue to restrain price developments.
Overall, prices are expected to be weak for the time being. Moreover, given the high degree of uncertainty regarding future economic 1  2  This report is based on data and information available at the time of the Bank of Japan Monetary Policy Meeting held on April 12 and 13, 2001.