As for the outlook, such expectations are likely to follow an increasing trend and gradually converge to around 2 percent on the back of the following: (1) in terms of the adaptive component, with the improvement in the output gap, firms’ stance is likely to gradually shift toward raising wages and prices, and (2) in terms of the forward-looking component, the Bank will pursue monetary easing through its strong commitment to achieving the price stability target.
Nevertheless, if competition among firms — which provide goods and services that are difficult to differentiate — intensifies further, prices of these goods and services may not rise even if the 3/5  BIS central bankers' speeches  output gap widens within positive territory.