While the fact that the pace of increase in the CPI has been moderate compared to the economic expansion and the labor market tightening is partly attributable to the sectoral shock of such factors as price declines at major supermarket chains mainly resulting from intensifying competition with other types of retail businesses, this reflects the fact that the mindset and behavior based on the assumption that wages and prices will not increase easily have been deeply entrenched among firms and households.
There have been moves by firms to make efforts to absorb a rise in labor costs by increasing labor-saving investment and streamlining their business process, while limiting wage increases — which correspond to the labor shortage — mainly to part-time employees.