Inflation is likely to move toward around 2 percent.
The year-on-year rate of increase in the CPI is likely to be in the range of 2.5-3.0 percent in fiscal 2026, as the rise in crude oil prices is expected to push up prices of energy and goods. Thereafter, with the waning of the effects of high crude oil prices, the rate of increase is expected to decline to the range of 2.0-2.5 percent in fiscal 2027 and to around 2 percent in fiscal 2028. Meanwhile, underlying CPI inflation, which excludes temporary fluctuations, is likely to increase gradually and then be at a level that is generally consistent with the price stability target of 2 percent.