For instance, according to a survey conducted by the government, the significant reasons why firms do not pass on cost increases to sales prices despite rises in personnel expenses and prices of raw materials are that they wish to maintain relationships with business partners and consumers and are concerned about reductions in sales volumes.
What lies behind this likely is that people's tolerance of price rises has decreased, due mainly to the effects of prolonged deflation. In order to ease this cautious stance toward  4  price rises, households' income situation needs to improve.