Toshihiko Fukui Prices Quotations

There is a high chance that core consumer prices will turn to be positive toward the end of the year.

Rises in prices may not accelerate, but it's unlikely that they will fall back into negative territory once they start rising,

Recent empirical studies, however, show such short run effects become small because the exchange rate pass-through to import prices declines.

We will confirm that consumer prices will stabilize at zero or above before taking action.

As for the short run effects, exchange rate movements influence the economy through changing relative prices between goods at home and abroad.

This is because the negative contribution from (weak) rice prices is likely to dissipate and the effects of a reduction in electricity and telephone charges are also expected to ease.

The year-on-year rate of change in consumer prices is projected to be zero percent or to show a slight increase towards the end of this year,

It was determined at today's meeting that we cannot say that core consumer prices have stabilized above zero. The bank has not decided when to shift its policy.

It's necessary to make the judgment calmly and objectively without any preconceived notions about whether the consumer price index excluding fresh food prices has stabilized at zero or above.

However close attention will have to be paid to rising crude oil prices and their impact on the domestic and overseas economies.