More Japan households see higher prices a year from now: survey

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 per cent said they expected prices to rise a year from now, up from 79.3 per cent in the previous survey conducted three months ago.

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

Households’ inflation expectations are among the factors the BOJ scrutinises in determining whether inflation will sustainably achieve its 2 per cent 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. REUTERS