7 percent for one year, 1. 8 percent for three years, and 1. 9 percent for five years ahead. so while they both basically project a rising trend, small firms have higher levels of inflation expectations ( chart 11 ). bis central bankers ’ speeches by focusing on the four largest responses – “ around plus 2 percent, ” “ around plus 1 percent, ” “ around 0 percent, ” and “ don ’ t have clear views ” – among the aforementioned options, the following points are observed : • second, among “ all firms, all industries, ” the general price outlook for one year ahead is relatively widespread among the options compared with the sales price outlook. the largest “ around plus 1 percent ” responses account for about 30 percent of total responses, followed by the “ around plus 2 percent ” and “ around 0 percent ” responses ( accounting for about 20 percent each ). the “ don ’ t have clear views ” responses account for approximately 15 percent of total responses. on the outlook for three years ahead, the “ don ’ t have clear views ” response increases to about 30 percent. the next - largest responses are “ around plus 1 percent ” and “ around plus 2 percent ” ( each accounting for about 20 percent ). this pattern becomes more apparent with the outlook for five years ahead. the proportion of the “ don ’ t have clear views ” responses rises to approximately 40 percent ; the “ around plus 1 percent ” and “ around plus 2 percent ” responses both drop to about 15 percent. from one to five years ahead, the proportion of “ don ’ t have clear views ” responses are greater than that of the “ don ’ t know ” response for sales price outlook ( chart 12 – 1 ). • third, the four - group classification reveals that the “ don ’ t have clear views ” response is greater among large than among small firms. the responses account for over 40 percent on the outlook for three years ahead and over 50 percent on that for five years. as for small firms, the proportion of “ around plus 2 percent ” responses is greater than that for large firms with the outlooks for one, three and five years ahead ( charts 12 – 2, 12 – 3, and 12 – 4 ). summary of observations related to inflation expectations of firms based on the aforementioned results, i will now summarize the combined observations on sales price - and general price - related inflation expectations of firms. 1. the average outlook for general prices among “ all firms, all

market and to come up with mechanisms to promote greater adherence to the code. 2 there are two important points worth highlighting : first, it ’ s a single code for the whole industry and second, it ’ s a global code. on the first point, the global code is replacing the existing codes of conduct that have been present in the fx market, including the nips code here in london. on the second point, the code covers all of the wholesale fx industry. this is not a code of conduct for just the sell side. it is there for the sell side, the buy side, non - bank participants and the platforms ; its breadth is both across the globe and across the whole structure of the industry. the code is intended to apply to all aspects of the wholesale foreign exchange market. i am chairing this work, with simon potter of the federal reserve bank of new york leading the work on developing the code and chris salmon of the bank of england leading the adherence work. our working group comprises representatives of the central banks of all the major fx centres, drawing on the membership of the markets committee which is comprised of heads of 1 / 4 bis central banker's speeches the market operations areas of the 15 major currency areas. 3 given our roles, we are all very much interested in the effective functioning of the fx market. again, it is very much a global effort reflecting the global nature of the foreign exchange market. this work is also very much a public sector – private sector partnership. in that regard, we are being ably and vigorously supported in this work by a group of market participants, chaired by david puth, ceo of cls. the group contains people from all around the world on the buy side, including corporates and asset managers, and the sell side, along with trading platforms, ecns and non - bank participants, drawing from the various foreign exchange committees ( fxcs ) and beyond. there are a number of members of david ’ s group that are from the london market including non - banks, platforms, asset managers as well as banks. hence all parts of the market are being involved in the drafting of the code to make sure all perspectives are heard and appropriately reflected. at the outset we decided to split the topics we intend to cover in the code into two parts. this first phase covers areas such as ethics, information sharing, aspects of execution and confirmation and settlement. the second phase is covering further aspects of execution including e - trading and platforms, prime