Moreover, to achieve the 2 percent price stability target with a sustainable increase in household spending, an improvement in current income conditions as well as an increase in expectations for future income growth is essential.
In addition, households’ recognition of the 2 percent target and monetary policy remains low; this points to the need for the Bank to improve its external communication policy toward promoting public understanding of its intentions. Regarding firms’ inflation expectations, I pay close attention to the average value for “all firms, all industries,” particularly the average value of “large nonmanufacturing” firms.