MNI BRIEF: Business Inflation Expectations Solid - BOJ Tankan

Japanese firms’ inflation expectations remained above 2% in June, unchanged from three months ago, supporting the Bank of Japan’s view that the price and wage norm has changed slightly, the BOJ June Tankan survey released on Monday showed.

Bank officials were content with solid inflation expectations and sales prices, and will continue monitoring how the pass-through of cost increases, including labour, were affecting retail prices.

On average companies saw the annual consumer inflation rate at 2.4% in June, unchanged from March. Firms forecasted a 2.3% rise three years ahead and a 2.2% rise in five years, both up from 2.2% and 2.1%, respectively.

For sales prices, companies expected a 2.8% increase a year from now, up from 2.7% previously. Firms saw a 4.1% increase three years ahead, up from 4.0% previous, and a rise of 4.8% in five years, up from 4.7% previous.