MNI BRIEF: Firms Raise Inflation Views In BOJ March Tankan

Both short- and medium-term inflation expectations at Japanese firms rose in the quarter ended in March, consistent with central bank views that inflation expectations are up and companies are more positive about raising retail prices, the Bank of Japan Tankan survey showed on Friday, see: MNI BRIEF:BOJ March Tankan Shows Sentiment Drop On Energy, Yen.

On average, companies saw the annual consumer inflation rate at 1.8% a year now, up from 1.1% in December. They also saw a 1.6% rise three years and a 1.6% rise five years ahead, compared with +1.3% and +1.4%, respectively in the December survey. The BOJ sees Japan’s core inflation rate around 2% in or after April but the bank has said the level is not sustainable without considerable wage hikes, see: MNI BRIEF: BOJ Kuroda: Rapid Import Price Rise Bad Inflation.