Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: Business Inflation Expectations Solid - BOJ Tankan

(MNI) Tokyo
(MNI) Tokyo

Bank of Japan officials have been heartened by solid inflation expectations among corporate executives, which will likely pave the way for firms to raise wages next spring, the BOJ December Tankan showed on Wednesday.

Both short- and medium-term inflation expectations at Japanese firms rose in the three months to December, endorsing the BOJ’s view that inflation expectations are rising and firms are more positive about raising retail prices. (See MNI POLICY: BOJ Policy Shift Needs Firm Tankan Inflation View)

On average, companies saw the annual consumer inflation rate at a record high of 2.7% a year from now, up from 2.6% in September. They also saw a record high 2.2% rise in three years and stayed at a record high 2% gain five years ahead, compared with increases of 2.1% and 2.0%, respectively in the September 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 behaviour.

The BOJ sees Japan’s core inflation rate rising close to 4% in the coming months but the Bank doesn’t expect the price rise to be sustainable without considerable wage hikes.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.