Japanese consumers' inflation expectations rise
Japanese consumers' inflation outlook improved for the first time in nearly two years during the January-March quarter, a Bank of Japan survey released Friday showed, in a positive development for Tokyo's efforts to eradicate deflation, marketwatch.com reports.
The quarterly survey showed that 67.0% of 2,174 randomly selected individuals see consumer prices rising over the coming year.
The figure compared with 64.7% in the October-December quarter and represented the first rise in seven quarters. A greater number of consumers also said prices would be rising five years down the line.
Some signs are emerging that inflation expectations may have bottomed out in Japan as mild price growth has returned on the back of a recovering economy, a weak yen and a turnaround in oil prices. A different BOJ survey released Tuesday also indicated a halting of declines in companies' price forecasts.
But the bank remains short of its 2% price goal, with actual inflation still running around zero, keeping policy makers wary of changing their ultra-easy monetary policy. Some government indicators on inflation expectations have also generated weaker results than the BOJ surveys.