Japan’s Household Inflation Expectations Jump to Most Since 2008
- Households see 5% inflation by next year, BOJ survey shows
- The expections are unrealistic, but they could impact spending
Customers shop at a grocery store in Tokyo, Japan.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
Inflation expectations for Japanese households jumped to the highest in 13 years, showing how costlier energy is influencing sentiment even as overall price gains remain far below the Bank of Japan’s target.
Households see inflation of 5% by next year, the most expected since December 2008, according to a quarterly survey by the central bank published Tuesday. They expect annual price increases of 3% on average over the next five years, a time span that central bankers look at more closely to steer monetary policy.