Given the fact that prices of perishable foods already started to rise and an imbalance in supply-and-demand continued to narrow thanks to economic growth, the fall in GDP deflator will be smaller in January-March.
Sales of materials and intermediate commodities are improving due to the increase in demands for export and information technology-related products.
Comments on monetary policy and the outlook for consumer prices continued coming out and concern is spreading among investors.
Investors will probably sell bonds today. Muto's comment and reference to core prices added to speculation the central bank will end the monetary easing policy sooner.
Reflecting solid consumer spending, the real estate and retail sectors are likely to lead the improvement in the overall non-manufacturing sector.
January output came in slightly below the market's expectations, but taken together with the forecasts we can say it's maintaining an upward trend.
