. figures for the cpi in japan are adjusted to exclude the estimated effects of changes in the consumption tax rate. 2. figures for the medium - to long - term inflation expectations are the expectations for the cpi 6 to 10 years ahead and are based on the " consensus forecasts. " sources : central labour relations commission ; japanese trade union confederation ( rengo ) ; ministry of internal affairs and communications ; bls ; consensus economics inc., " consensus forecasts. " 15 16 chart 8 inflation expectations after the introduction of qqe 2. 0 y / y % chg. 1. 8 1. 6 beginning of a introduction of consumption downtrend in qqe tax hike crude oil prices synthetic indicator of firms ', households ', and economists'inflation expectations [UNK] [UNK] destabilization of financial markets amid concern about emerging economies [UNK] 1. 4 1. 2 1. 0 0. 8 0. 6 0. 4 0. 2 cy 07 notes : 1. inflation expectations of firms, households, and economists are represented by the tankan, the " opinion survey, " and the " consensus forecasts, " respectively. notes : 2. semiannual data from the " consensus forecasts " up through 2014 / q2 are linearly interpolated. " opinion survey " figures exclude inflation expectations by respondents whose annual inflation expectations were + 5 % percent or greater and - 5 % percent or smaller. the output prices di in the tankan represents the difference between the share of firms that raised prices in the preceding three months and the share of firms that lowered prices. sources : consensus economics inc., " consensus forecasts " ; bank of japan.

inappropriate. since the introduction of qqe, the bank has been consistently pursuing powerful monetary easing both in terms of quantity and interest rates, and there is no change in its stance. the bank will continue with powerful monetary easing under " qqe with yield curve control, " aiming to achieve the price stability target of 2 percent at the earliest possible time. taking account of developments in economic activity and prices as well as financial conditions, it will take additional easing measures without hesitation if judged necessary to maintain the momentum toward achieving the 2 percent target. concluding remarks in conclusion, let me touch on the economy of nagasaki prefecture. tracing its history, the prefecture has functioned for a long time as a foothold for cultural interaction between many countries, as evidenced by the history of dejima, and thus represents a variegated history and culture. the prefecture takes advantage of the tradition of manufacturing, particularly of heavy industry including shipbuilding, and distinguished skill and technique. it also is endowed with tourist attractions including islands, hot springs, and fresh agricultural and fishery products, as well as a fascinating food culture. the shipbuilding industry, which is the key industry of the prefecture, is facing a severe environment surrounding orders, brought about by chronic excess of vessels globally and by sluggishness in the shipping market. there seems to be no influence on business operations for the time being as there is a backlog of orders for the upcoming three years or so, but i have heard that the local companies, including those engaged in shipbuilding, have started to take actions so as to change their business operations. in terms of tourism, the effects of the kumamoto earthquake have waned from summer, and i have heard that the number of visitors to major tourist facilities have picked up. moreover, efforts have been made steadily toward future developments of the prefecture, such as the proposal of " churches and christian sites in nagasaki " for inscription on the unesco world heritage list, nagasaki city being chosen as a " tourism nation showcase " by the japan tourism agency, and initiatives to establish destination management / marketing organizations for sightseeing. on the financial front, changes in the business environment - - such as consideration on integrating regional financial institutions - - have emerged under the idea to contribute to stimulating the region and vitalizing the local economy amid the situation of a declining and aging population. as for economic and financial communities of nagasaki prefecture, i believe that forthcoming changes must be addressed appropriately and strategically while gaining a strong footing. the bank anticipates