Japan households’ inflation expectations rise slightly -BOJ poll

Japan households’ inflation expectations rise slightly -BOJ poll

Japan households' inflation expectations rise slightly - BOJ poll
© Reuters. FILE PHOTO: A shopper checks food items at a supermarket in Tokyo, Japan January 20, 2023. REUTERS/Issei Kato/File photo

TOKYO (Reuters) -Japanese households’ inflation expectations rose slightly in the three months to September, a central bank quarterly survey showed on Friday.

The survey will be among factors that the Bank of Japan (BOJ) will scrutinise in producing new inflation forecasts at its Oct. 30-31 policy review.

The ratio of Japanese households expecting prices to rise a year from now stood at 86.8% in September, a tad higher than 86.3% in June, the BOJ survey showed.

Households expect inflation to accelerate by an average 10.7% a year from now, versus 10.5% seen in June, the September survey showed.

The percentage of households expecting prices to rise five years from now rose to 80.7% in September from 79.0% in June.

The survey underscores the pain from higher living costs of fuel and food, with renewed tension between Israel and the occupied Palestinian territory of the Gaza strip casting dark clouds over oil supply, possibly boosting the cost of fuel further.

Households’ inflation expectations are among factors the BOJ scrutinises in ascertaining whether inflation will sustainably achieve its 2% target on the back of solid wage gains – a prerequisite for dialling back its stimulus programme.

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