Although weakness remains in exports, production, and some indicators relating to consumption, the mechanism for economic recovery has been steadily maintained on the back of the firm employment and income situation as well as resilient household and business sentiment.
On the price front, somewhat weak developments in demand following the consumption tax hike and a substantial decline in crude oil prices have been exerting downward pressure recently. A temporary weakness in demand has already started to wane, and the decline in crude oil prices will have positive effects on economic activity from a somewhat longer-term perspective and eventually will push up prices.