C.  Challenges for Japanese financial institutions: micro perspective  I will next talk about two specific challenges for Japanese financial institutions. I will touch on the challenges for the authorities in the final part of my speech.
Turning to inflation, overall consumer prices, as measured by the price index for personal consumption expenditures, increased just 1 percent over the 12 months ending in April, up noticeably from its pace through much of last year but still well short of the Committee’s 2 percent objective. Much of this shortfall continues to reflect earlier declines in energy prices and lower prices for imports.