The figure is small, but may prove to be of great significance. On October 29th, in a semi-annual review of Japan's economy, the Bank of Japan's policy board announced that it expects-wait for it-inflation next year. The central bankers' median forecast for the consumer-price index, excluding volatile fresh-food prices, for the year beginning on April 1st 2005 is 0.1%. The thought of rising prices, after years of consumer-price deflation, prompts questions about when the central bank might eventually increase interest rates above zero, or at least scale back its unusual methods of loosening monetary policy. More immediately, though, it might herald a further stage in the revival of Japan's economy.
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