More Japan households see higher prices a year from now, survey shows

TOKYO: Japanese households’ inflation expectations rose in the three months to early March, a central bank survey showed on Friday.

The survey was conducted between Feb. 8 and March 5. Of the households surveyed by the Bank of Japan, 83.3% said they expected prices to rise a year from now, up from 79.3% in the previous survey conducted three months ago.

The survey also showed that 80.6% of households expected prices to rise five years from now, up from 76.5% in the previous poll.

Expected bump in Japan inflation may add to BOJ’s communication challenge

Households’ inflation expectations are among the factors the BOJ scrutinises in determining whether inflation will sustainably achieve its 2% target.

BOJ Governor Kazuo Ueda said during an interview with the Asahi newspaper published last week that inflation would likely accelerate from “summer towards autumn” as bumper pay hikes push up prices.