scale purchases of jgbs decrease strong and clear commitment to achieve the price stability target of 2 percent increase ⇒ ⇒ ⇒ nominal interest rates － inflation expectations [UNK] real interest rates decrease improvement in the economy and increase in prices chart 3 consumer prices y / y % chg. cpi ( all items less fresh food and energy ) cpi ( all items less fresh food ) - 1 - 2 - 3 cy 07 notes : 1. figures for the cpi ( all items less fresh food and energy ) are calculated by the research and statistics department, bank of japan. 2. figures for the cpi are adjusted to exclude the estimated effects of changes in the consumption tax rate. source : ministry of internal affairs and communications. chart 4 the 10 strategic public - private joint projects toward gdp of 600 trillion yen 1. the fourth industrial revolution 2. toward a world leading healthcare country 3. overcoming environmental and energy constraints and expanding investments 4. changing sports to a growth industry 5. revitalizing markets for transaction of existing houses and reform 6. improving productivity in the service industry 7. bringing about revolution among small and medium - sized firms and micro firms 8. promoting proactive agriculture, forestry and fishery, as well as reinforcing exports 9. realizing japan as a tourism - oriented country 10. taking measures to stimulate domestic consumer sentiment source : " japan revitalization strategy 2016 " ( cabinet decision, june 2, 2016 )

environment for private demand. furthermore, it is important to promote structural reform in order to facilitate a recovery in private demand. with regard to prices, import prices are rising somewhat due to the increase in international commodity prices such as crude oil prices, along with the recent depreciation of the yen. domestic wholesale prices, notwithstanding the fall in prices of electric machinery, are flat mainly due to the this report was written based on data and information available when the bank of japan monetary policy meeting was held on 10 february 2000. the bank ’ s view on recent economic and financial developments, determined by the policy board at the monetary policy meeting held on 10 february as the basis of monetary policy decisions. rise in prices of petroleum and chemical products reflecting an increase in crude oil prices. consumer prices remain unchanged fundamentally. corporate service prices are still falling slowly. as for the outlook, overall prices are likely to be flat for the time being despite the continued fall expected in prices of some machinery. this is because the supply - demand balance is improving gradually, as shown in the decline in inventories, and because the rise in crude oil prices to date will continue to be passed on to prices of other products for a while. however, attention should still be paid to the downward pressure on prices, as clear signs of a self - sustained recovery in private demand have not yet been observed and wages continue to fall. turning to the financial markets, the influence on the money market of concerns related to the year 2000 problem has almost disappeared. the overnight call rate has stayed at nearly zero, and financial institutions have been confident about the availability of overnight funds. the amount outstanding of funds in the call money market has been basically unchanged. interest rates on term instruments have generally been stable at the level as low as that prior to the emergence of concerns related to the year 2000 problem. the japan premium remains negligible. yields on long - term government bonds declined and, in late january, reached around 1. 60 - 1. 65 percent. but then they rebounded in reaction to the depreciation of the yen and the developments in the stock market, and are presently around 1. 85 percent. the yield spread between private bonds ( bank debentures and corporate bonds ) and government bonds continues narrowing, primarily that between private bonds with relatively low credit ratings and government bonds. stock prices have been on a rising trend since mid - january against the background of the depreciation of the yen, and are currently moving around 19, 500