Expectations of rising prices for Japanese households have risen sharply in two years

© Reuters. PHOTOGRAPHS: Buyers wearing protective clothing, following the spread of coronavirus (COVID-19), are on display in Tokyo, Japan March 27, 2020. REUTERS / Issei Kato

It’s Leika Kihara

TOKYO (Reuters) – Nearly 80% of Japanese households expect a rise in inflation from a year-on-year to a two-year period, a central bank survey showed Tuesday, signaling a rise in living prices is beginning to change attitudes. future price movements.

The study, which took place between Nov. 5 and Dec. 1, also showed that more families expect prices to rise five years from now compared to a previous survey in September.

The results give hope to the Bank of Japan’s efforts to achieve inflation to 2% of its target, including by changing public perceptions of the recession, and the financial wall.

A quarterly survey by the BOJ showed that the number of households expecting a year-over-year increase from 78.8%, up from 68.2% in the September 2019 vote, has hit the hardest since September 2019.

Overall, 80.8% said they expect prices to rise five years from now, up from 78.1% in a previous survey and the highest rate since December 2019.

The study is part of what the Bank of Japan will review at next week’s summit to determine whether rising oil and oil prices have affected family expectations.

Japan was not affected by rising global prices, while commodity prices rose 9.0% in November since last year. But consumer price hikes fell by only 0.5% in November as a sharp hit of the coronavirus and a sharp rise in wages are preventing businesses from offering higher-paying households.

Some experts expect oil prices to rise by more than 1.5% around April, while rising cell phone prices last year have slowed down and rising oil prices have pushed up electricity prices.

Many BOJ policymakers consider any such increase to be unstable unless it is combined with a fixed paycheck, pointing to Japanese ideas of declining prices.

BOJ Governor Haruhiko Kuroda says the central bank will maintain a monetary policy to remain stable until 2% inflation is achieved, as partners such as the US Federal Reserve are looking to move away from aggressive measures.

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