The Bank will thoroughly examine the consequences of recent developments in the trade friction and their potential effects on Japan's economy. B. Outlook for Prices As for the outlook for prices, the year-on-year rate of change in the CPI in Japan is likely to increase gradually with the economy continuing on an expanding trend.
The outlook for prices is considered to be determined basically by two factors: the supply-demand balance of the economy as a whole and people's expectations for future price developments.