The rising inflation trend has become more pronounced and the European Central Bank has suggested a future policy rate rise. In some peripheral European countries that suffered fiscal problems, long-term interest rates have stayed high and uncertainty has remained elevated.
C.  Japan’s economy  In light of such recovery in the U.S. economy and high growth in Asian emerging economies, the effects of inventory adjustments in IT-related goods have run their course around the world. Private consumption in Japan is showing signs of picking up after suffering the reverse following the sharp increase seen previously.