While price developments are affected by a number of factors, I believe the underlying trend in prices is determined by the aggregate supply-demand balance. With the output gap remaining positive, it is projected that wage growth rates and the tolerance of households toward price rises will improve, and that firms' stance will shift toward further raising prices.
In this situation, firms' moves to raise prices are likely to become more widespread. The actual rise in wages and prices is then expected to gradually weaken the mindset and behavior based on the assumption that wages and prices will not increase easily. Medium- to long-term inflation expectations are projected to rise gradually as a result.