Japanese Household Inflation Expectations Hit Two-Year Highs -BOJ

Por Leika Kihara

TOKYO, Jan 11 (Reuters) – Nearly 80% of Japanese households believe inflation will accelerate within a year and reach its highest level in more than two years, a survey by the central bank, a central bank, showed on Tuesday. a sign that the rising cost of living is beginning to change public perception of future price developments.

The survey, conducted between November 5 and December 1, also showed that more households expect prices to rise in the next five years, compared to the previous survey in September.

The results offer some hope to the Bank of Japan’s effort to prop inflation up to its 2% target – in part by changing public perception of persistent deflation – with a barrage of money.

The BOJ’s quarterly survey showed that the percentage of households that expect prices to rise within a year stood at 78.8%, up from 68.2% in the September survey and reaching the highest level since September. of 2019.

Some analysts are forecasting core consumer inflation to exceed 1.5% around April, as the effect of last year’s cell phone rate cuts wanes and rising oil costs drive up electricity bills.

Bank of Japan Governor Haruhiko Kuroda has said the central bank will maintain extremely loose monetary policy until 2% inflation is reached, even though other central banks, such as the US Federal Reserve, are considering the possibility. to abandon stimulus measures in crisis mode.

(Reporting by Leika Kihara; editing by Ana Nicolaci da Costa; translation by Flora Gómez)



Reference-www.infobae.com

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