Downside risks to prices I would now like to explain the downside risks to prices. Specifically, the rate of increase in flexible consumer prices, which is projected to decelerate temporarily, may not accelerate again as expected. It is likely that this risk arises from overseas factors rather than domestic factors. The current global economy is marked by a range of uncertainties.
Depending on the course of the situation in Ukraine, the downward pressure on European economies could heighten, particularly for those in the euro area. In China, there are concerns over adjustment pressure in the real estate market and over the risk of economic stagnation amid the elevated youth unemployment rate. Having said that, I believe uncertainties surrounding the U.S. economy warrant particular attention.