MNI DATA IMPACT: Firms Long-Term CPI Outlook Falls: BOJ Tankan

Longer-term inflation expectations at Japanese firms were lower in the three months September, although the one-year outlook was unchanged from the June reading, the latest Bank of Japan Tankan survey showed.

On average, companies saw the annual consumer inflation rate at 0.3% a year from now, unchanged from June. They also saw a 0.6% rise three years out and a 0.8% rise five years ahead, down from +0.7% and +0.9%, respectively in the June survey.

The BOJ has previously admitted that momentum toward achieving its 2% price target has been temporary lost, with consumer prices are expected to be negative for the time being.

The survey, conducted from August 27 to September 30, showed companies on average expect sales prices to fall 0.2% a year from now, up from -0.3% in June. They saw an increase of 0.6% three years ahead, up from +0.5% from June and they saw an increase of 1.2% five years sales price, unchanged from June.