With regard to the outlook, the slower growth in imports of consumer goods is expected to alleviate the downward pressure on prices to some extent. However, as I mentioned earlier, momentum for a recovery in domestic private demand is expected to be weak, and factors such as technological innovation, deregulation, and streamlining of distribution channels will continue to restrain prices.
Given the situation, prices as a whole are expected to follow a moderate downtrend for the time being. II. Financial Developments  Financial markets were unstable toward the end of March 2002, reflecting market participants' nervousness due to growing concern about the stability of the financial system in the period immediately before the removal of blanket deposit insurance.