Japan Inc. Pares Inflation Forecasts, Adding Concerns for Kuroda
- Five-year outlook reduced to 1.1% in Tankan company survey
- Midterm inflation forecast lowest since survey began in 2014
Haruhiko Kuroda.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Japanese companies cut their forecasts for inflation for five years’ time, dimming the prospects for Bank of Japan Governor Haruhiko Kuroda meeting the 2 percent inflation target during the next fiscal year as he has projected.
Companies expect 1.1 percent of inflation in five years, the lowest estimate since the survey began in 2014, according to a report by the BOJ Monday. In three years, companies also expect 1.1 percent price growth, and 0.7 percent in one year.