MNI BRIEF: Inflation Outlook Rises Among Firms: BOJ Sep Tankan

Both short- and medium-term inflation expectations at Japanese firms rose slightly in the three months to September, likely easing Bank of Japan's concern over weaker corporate price views, the latest Bank of Japan Tankan survey showed on Friday.

On average, companies saw the annual consumer inflation rate at 0.7% a year from now, up from 0.6% in June. They also saw a 1.0% rise three years out and 1.1% rise five years ahead, compared with +0.9% and +1.1%, respectively in the June survey.

The BOJ has previously admitted that momentum toward achieving its 2% price target has been temporarily lost, with the key consumer price index expected around zero percent in the short run and likely to rise gradually.

The survey, conducted from August 26 to September 30, showed companies on average expect sales prices to rise 0.7% a year from now, up from 0.5% in June. They saw an increase of 1.3% three years ahead, up from +1.1% in June and they saw an increase of 1.9% five years sales price, up from 1.7% in June.