Note 1-14

14 Economic Survey of Japan (FY 2000) said, "Prices are remaining stable." In those days, while the economy was picking up, the Consumer Price Index (General, excluding fresh food) fell only 0.2% from a year earlier in the October-December quarter of 1999 and the January-March quarter of 2000, after having moved sideways since May 1999. Since then, consumer prices have stayed below year-earlier levels and the margin of decline has expanded gradually. The Monthly Economic Report for March 2001 defined a persistent price decline as deflation and assessed that the Japanese economy is "in a mild deflationary phase."