Free Trial

MNI BRIEF: Price Rises Hold Household 5-Yr Inflation At 5%

(MNI) Tokyo

Japan's five-year household median inflation forecast stood unchanged at 5%, while the number of households expecting prices to rise rose to 80.7% from 79%, according to the Bank of Japan's quarterly consumer survey on Friday.

The one-year household median inflation view stood at 10%, also unchanged from three months ago, but the number of households expecting prices to rise increased to 86.8% from 86.3% in June. BOJ officials focused on inflation expectations amid corporate price hikes will look favorably on the results.

However, the survey also showed the number of households experiencing deteriorating circumstances rose over Q3 to 57.4% from 56.8% in June, illustrating the impact of price rises on households. When asked why their household circumstances had worsened, respondents pointed to price rises primarily, followed by the decline of salary and business income.

The household sentiment diffusion index fell 6.6 points to -42.5 in September, the first fall in three quarters, with more people noting worse sentiment due to income levels and media reports, the survey showed. The consumer sentiment outlook index projecting conditions a year ahead also fell for the first drop in three quarters, down 14.3 points to -30.1 in September from -15.8 in June.

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

To read the full story



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.