More Japan households expect inflation to rise

Japanese household’s inflation expectations jumped in the third quarter, based on a survey released on Monday. 

According to a quarterly central bank poll, the percentage of Japanese families expecting prices to rise in a year’s time rose to 68.2% in September. This was higher than June’s 66.8%.

The percentage of families expecting price increases in the next five years fell to 78.1% in September, down from 79.3% in June.

More families expect economic conditions to worsen a year from now, highlighting fears that the lasting effects of the coronavirus pandemic would weigh on spending.

According to the study, 61.5% said prices were higher than a year ago, up from 56.4% in June.

The poll was conducted on 2,209 households from August 6 to September 1.

Meanwhile, the median forecast for inflation a year from now was 3.0% in September from June’s 2.0%.

Japan’s economy is steadily improving despite sluggish consumption. The country’s strong foreign demand continues to contribute to its recovery.