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MNI BRIEF: Business Inflation Expectations Rise: BOJ Tankan

(MNI) Tokyo
(MNI) TOKYO

Short- and medium-term inflation expectations at Japanese firms rose in the three months to March 2023, endorsing the Bank of Japan's (BOJ) view that inflation expectations have risen and firms expect to raise retail prices, according to the the central bank's March Tankan survey.

The solid inflationary results, which indicate firms set to raise wages are expected to increase retail prices again, will encourage BOJ officials.

On average, companies estimate the annual consumer inflation rate will reach a record high of 2.8% a year from now, up from 2.7% in December 2022. The companies project a record rise of 2.3% over three years and a 2.1% gain over five years, compared with 2.2% and 2.0% in the December survey.

The results were consistent with the latest view that inflation expectations have risen moderately and support the BOJ's assessment of corporate price setting behavior.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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