Japan's economy is likely to recover toward the middle of the projections period, with the impact of the novel coronavirus (COVID-19) and supply-side constraints waning, although it is expected to be under downward pressure stemming from high commodity prices and slowdowns in overseas economies. Thereafter, as a virtuous cycle from income to spending intensifies gradually, Japan's economy is projected to continue growing at a pace about its potential growth rate. • The year-on-year rate of increate in the consumer price index (CPI, all items less fresh food) is likely to be relatively high in the short run due to the ... (full story)