Acceleration in wage growth, coupled with the ongoing rise in the number of employees, will likely lead to a more firmly established uptrend in employee income. Property income of households is also expected to continue to increase due mainly to the rise in dividends, since households have been increasing their investments in financial instruments such as stock investment trusts.
Furthermore, how baby boomers, who have started to retire, will spend their retirement benefits and savings should be watched closely. Thus, private consumption is likely to follow a moderate upward trend as the positive influence of the strength in the corporate sector feeds through into the household sector via various channels. In this situation, the environment surrounding prices is expected to gradually improve.