Private consumption also is likely to continue on a moderate increasing trend as the employment and income situation continues to improve steadily. However, it is necessary to pay close attention to the effects of the consumption tax hike on private consumption. 2. Prices Let me now turn to price developments.
The year-on-year rate of change in the consumer price index (CPI) for all items less fresh food and that for all items excluding the effects of energy prices are both at around 0.5 percent, together suggesting that the CPI has continued to show relatively weak developments compared to the economic expansion and tight labor market conditions.