Overall, Japan’s economy will inevitably continue to deteriorate for a while. In this situation, continuous attention should be paid to the risk of a negative impact on the economy induced by developments in foreign and domestic financial markets. With regard to prices, import prices are starting to rise with the decline in international commodity prices coming to an end and the yen weakening.
Domestic wholesale prices continue to decline as a whole mainly in machinery and chemical products, although the decrease in the prices such as of electronic parts seems to have ceased. Consumer prices are weakening reflecting the decline in prices of imported products and their substitutes. Corporate service prices continue to decrease.