Since last fall, rising prices for energy and food have made a significant dent in the purchasing power of consumers' incomes. Moreover, despite some improvement in the stock market recently, households' net worth has deteriorated since the beginning of the year as the prices of homes have declined; and credit conditions have tightened.
It may be difficult within a short period of time to resolve the problem of household debt, but over the medium- to long-term it is necessary to maintain the rate of growth in debt at no more than that in income.