The major reason for the recent acceleration in the price decline in Japan was the prices of imports such as resources and energy being lower than the high levels observed up until  BIS Review 101/2009  3  around the summer last year. From the autumn this year, the effects of higher prices of last year are expected to diminish gradually.
Indeed, much economic activity ground to a halt last week. But the foundations of our free society remain sound, and I am confident that we will recover and prosper as we have in the past.