Business / Economy

Japanese firms forecast 0.9% inflation over next year

JIJI

Companies on average expect domestic consumer prices to rise 0.9 percent in a year’s time, a quarterly Bank of Japan survey for September showed Wednesday.

The expected rate was unchanged from the previous poll in June, the BOJ said.

The average projected inflation rate was 1.0 percent three years from now and 1.1 percent in five years time, both unchanged from the previous survey.

According to the BOJ’s tankan quarterly survey for September, released Tuesday, the headline diffusion index for large manufacturers’ current business conditions worsened for the third straight quarter, as the U.S.-China trade war fueled concerns about a global economic slowdown.

The latest price survey showed that companies also maintained a cautious outlook on inflation. The survey excluded effects on prices from the consumption tax hike to 10 percent from 8 percent implemented Tuesday.

GET THE BEST OF THE JAPAN TIMES
IN FIVE EASY PIECES WITH TAKE 5