However, firms have voiced that it is difficult to accurately gauge the potential impact at this point. In addition to this, if protectionist moves last for a long time, we will need to pay attention to the possibility that their effects on Japan's economy will become more significant through the various channels that I mentioned earlier.
Thus, labor market conditions and income formation continue to improve moderately on the whole. Prices remained stable on the whole, excluding the effect of the consumption tax hike. Domestic wholesale prices (adjusted for seasonal electricity rates) have remained virtually unchanged. This is because overall domestic supply and demand conditions have improved moderately, except for some construction goods, while import prices have declined.