The latest Reuters Corporate Survey shows:

  • 70 pct of Japan companies see no decisive escape from deflation in foreseable future, up from 48 pct in the January survey
  • 79 pct of Japan companies worried consumer prices could return to deflation this year or next

Comments from the survey respondents along the lines that

  • Demand is not on an upward trend
  • Household spending is not rising because base pay is not rising
  • It has become difficult for companies to lift prices