MNI DATA IMPACT: BOJ June Tankan: Biz CPI Outlook Down

--Firms 1-Yr Infln Rate Outlook at 0.3%; 0.5% in March 

--Firms 3-Yr Infln Outlook 0.7%; 0.8% in Mar, 5-Yr Infln Rate 0.9% v 1.0%

     TOKYO (MNI) - The inflation outlook among Japanese companies fell from

three months ago, indicating an expectation consumer prices will remain muted,

the Bank of Japan's June Tankan survey released Wednesday showed.

     The survey was conducted from May 28 to June 30.

     The key points from the inflation outlook section of the Tankan follow.

     --On average, companies saw the pace of increase in consumer prices for

one-, three- and five-years ahead lower than three months ago.

     --Firms on average expect the annual consumer inflation rate at 0.3% a year

from now, down from 0.5% in March, a 0.7% rise three years out and a 0.9% rise

five years ahead, both down from +0.8% and +1.0%, respectively, from March.

     --The BOJ has said that the momentum toward achieving the 2% price target

has been temporary lost and consumer prices are expected to remain weak.

     --The survey showed companies on average expect sales prices to fall 0.3% a

year from now, down from +0.2% in March. They saw an increase of 0.5% three

years ahead, also down from +0.9% from March and they saw an increase of 1.2%

five years sales price, down from +1.4%.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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