Oil and commodities will probably keep increasing producer prices at the current pace. Many companies are still struggling to pass on higher manufacturing costs to consumers as they haven't regained pricing power.
Yasukazu Shimizu
power oil
Overseas and domestic demand was solid in January. We can expect production to keep expanding steadily, supporting the economy.
economy january demand
The recent narrowing in Japan's trade surplus has come as improving domestic demand has pushed up the nation's import bills and thereby offset some of steady export gains.
improving demand trade
While we saw a pick-up in spending at the beginning of the year, that was just a one-off as consumers spent on sales and on seasonal goods. Given the softness we're seeing in spending in February, there isn't evidence that rising wages are feeding into consumption.
beginning sales rising evidence consumption
Demand for final goods is gradually recovering. Prices for these products will stay positive, though their gains probably won't accelerate.
products positive demand
Both exports and domestic demand are on a good footing. Production is likely to improve gradually in the coming months.
good demand
But finally, firms are in a position in which they can spend money aggressively.
money
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