More Japan households expect inflation to edge up

More Japan households expect inflation to edge up

The overall percentage of Japan’s households expecting inflation to step up has hit an almost two-year maximum, as a major bank poll disclosed, giving some hope that economic revival will help the BOJ to meet its elusive 2% price objective.

However, more households complained about being worse off than in 2016 because soaring prices made them spur spending, as the survey disclosed, thus underscoring the challenge policymakers face in stimulating inflation without affecting consumption.

The BOJ's poll on customers’ livelihood revealed that the percentage of households, expecting prices to edge up a year from 2018, hit 75.6% in December, adding from 70.4% in September and demonstrating the highest outcome since March 2016.

Among the polled Japanese households, approximately 81.9% told they actually expect inflation to pick up five years from 2018, moderately from 81.4% in September.



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