C.  Private consumption  Relatively weak developments have been observed in indicators of consumer sentiment since summer 2014, although these indicators have recently shown some signs of improvement. Behind this, there seems to be concern over a decline in real wages caused by the divergence between the rate of increase in prices and that in wages.
In this regard, in a situation where the inflation rate has recently shown a declining trend, if increases in wages, including those in base pay, are realized this coming spring, as happened last spring, the divergence between the two rates will narrow or dissipate; this in turn will exert positive effects on consumer sentiment, and hence on private consumption.