As mentioned earlier, inflation expectations are rising on the whole from a somewhat longer-term perspective, due partly to the effects of the expansion of QQE last October despite the decline in crude oil prices. We will examine whether the trend rise in inflation expectations will continue in a situation where CPI inflation has declined.
In the following, I will touch on the outlook for economic activity and prices. II. Outlook for economic activity and prices  Outlook for economic activity Looking ahead, Japan’s economy is expected to continue its recovery trend with a virtuous cycle from income to spending maintained in both the household and corporate sectors and with a favorable environment of inexpensive crude oil prices.