The results of the Bank of Japan's quarterly survey, which was conducted from August 8 to September 3 among 4,000 people, showed that Japanese households expect consumer inflation to rise by an average of 10% a year from now. In June, when the previous survey was conducted, households expected prices to rise by 11.5%.
The data also showed that the share of households that expect prices to rise a year from now dropped to 85.6% from 87.5% in June. Regarding the outlook for price levels over the next five years, 83.6% of households expect prices to rise, compared with 82% in June. Respondents expect consumer inflation to rise by an average of 7.9% over the next five years, compared with 8.7% in June.
Respondents also expressed their opinion on the outlook for economic conditions one year from now. 6.6% of households expect economic conditions to improve (compared with 7.9% in June), 56.5% predict that economic conditions will remain unchanged (compared with 50.9% in June, and 36.2% believe that economic conditions deteriorate (compared to 40.3% in June).