Business fixed investment is projected to follow a moderate increasing trend as corporate profits continue to improve. Private consumption is expected to remain resilient, supported by improvement in the employment and income situation. Under these circumstances, industrial production is expected to continue increasing moderately. As for prices, the year-on-year rate of increase in the CPI is likely to continue rising.
In a situation where the effects of the improvement in the supply and demand balance are expected to become clear with an economic recovery, a rise in petroleum product prices – reflecting the recent developments in foreign exchange rates and crude oil prices – and a further rise in electricity charges by electric power companies are likely to exert upward pressure on overall prices.