REPEAT: MNI 5 THINGS: BOJ: Consumer Sentiment Dips, Costs High

     TOKYO (MNI) - The Bank of Japan's quarterly consumer survey released

Thursday showed that sentiment dipped from three months ago as fresh food prices

remained high after surging late last year. It also indicated a slight easing in

inflation expectations amid uncertainty.

     The survey was conducted between Feb. 8 and March 6, when the global stock

market sell-off made people more cautious about the economic outlook, as seen in

the Cabinet Office's monthly Consumer Confidence Survey for February, released

last month. Of the 4,000 people polled, 2,092, or 52.3%, responded to the BOJ

survey.

     The key points from the survey results:

     * The BOJ's consumer sentiment diffusion index for the current climate fell

by 0.5 point to -12.4 in March after rising 1.6 points to -11.9 in December,

posting the first drop in five quarters. More people said it was not easy to

make ends meet, compared to a year before.

     * The consumer sentiment outlook index projecting conditions a year ahead

marked a second consecutive quarterly rise, up by a slight 0.3 point at -15.2 in

March, but the pace of increase decelerated from the 2.5-point rise to -15.5 in

December.

     * The BOJ survey also showed that the percentage of respondents expecting

prices to rise in the next year stood at 73.9% in March, down from 75.6% in

December, while 2.5% said prices would fall in the next year, up from 1.9% three

months earlier. Those saying prices would be little changed 12 months ahead rose

to 22.8% from 21.6%. The median CPI forecast stayed at +3.0%.

     * Looking five years ahead, 81.0% said prices would rise, down slightly

from 81.9% three months earlier. Meanwhile, 3.4% of respondents expect prices to

fall, compared with 3.5% in December. Those saying prices would be little

changed rose to 13.7% from 13.1%. The median forecast stayed at +2.0%.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com