The virtuous circle of growth in production, income, and spending is likely to remain intact against the background of the expansion of the global market and the extremely accommodative financial conditions, although there are uncertainties regarding overseas economies and global financial markets. In this situation, upward pressures on prices are likely to build up gradually.
Looking at recent developments in price indices, while the domestic corporate goods price index (CGPI) has been rising mainly due to increases in international commodity prices, higher materials prices have not been passed through to the retail level as much as at the wholesale level.