Turning to the outlook on prices, there is potential upward pressure on prices reflecting the yen’s depreciation, but they are expected to remain stable for some time.
This is because, 1) crude oil prices have begun to weaken, 2) the recovery in domestic supply and demand conditions has been moderate, and 3) there remains a strong downward pressure on prices owing to technological innovations, particularly in electrical machinery. However, price differentials between home and abroad have narrowed, and the general sense of weak supply and demand conditions for products has receded.