Expectations that oil prices will remain depressed for a prolonged period spell good news for consumers with cheaper gasoline and electricity, and for corporations with potentially higher earnings, economists say.

In the short term, sharply lower oil prices could hurt the Abe administration's efforts to end deflation. But in the long term, the trend will have a positive impact by pushing up prices through higher wages and stronger consumer confidence, they say.

"This is basically a plus for the Japanese economy," said Hidenobu Tokuda, an economist at the Mizuho Research Institute.