Bank of Japan Gov. Haruhiko Kuroda's faith he can push inflation from zero to 2 percent in about a year is starting to win over consumers and bond investors.
A government survey released June 9 showed 2 in 5 consumers expect prices to rise by 2 to 5 percent in 12 months, while a quarter estimate they will jump more than 5 percent. Inflation-protected bonds are signaling living costs will rise 1 percent per year over the next decade, up from 0.75 percent at the beginning of the year.
Benchmark 10-year notes are set to complete their first consecutive quarterly decline since March 2011 as a 40 percent rally in oil from a six-year low bolsters Kuroda's claim that the BOJ price goal may be reached between April and September next year. The central bank last week maintained its plan to expand the monetary base at an annual pace of ¥80 trillion ($652 billion) after inflation vanished two months ago.