MNI BRIEF: Business Inflation Expectations Solid - BOJ Tankan

Japanese firm inflation expectations remained unchanged at 2.2% for three years and a 2.1% over five, while corporate output prices remained strong, supporting the Bank of Japan's view that the economy's disinflationary norm is changing, the BOJ December Tankan survey released on Wednesday showed.

On average, companies saw the annual consumer inflation rate at 2.4% in December, slowing from 2.5% in September's Tankan. The BOJ will look favourably on the three- and five-year inflation view, as it focuses on sustainability amid slowing CPI.

The survey showed companies on average expect sales prices to rise 2.6% a year from now, down from +2.8% in September. But they expect an increase of 3.7% three years ahead, down from 3.8% in September and an increase of 4.4% five-year sale prices, unchanged from September.