As explained earlier, the employment and income situation has been improving steadily and the unemployment rate is expected to decline further. Against this background, as employee income increases and private consumption picks up, firms’ pricesetting stance is expected to revert to raising prices.
In addition, the “stimulus package” by the government is expected to further tighten the already tight labor market conditions, lead to an increase in wages, and stimulate household spending through the increase in employee income. Many firms want to raise sale prices reflecting the increase in costs such as wage increases, as long as demand such as private consumption can maintain its resilience.