Japanese firms see inflation and the chance of worldwide recession as the primary risks they face in the fiscal year beginning April, a Reuters monthly poll has shown.

Inflation in Japan rocketed to a four-decade high in January, driven largely by energy prices, putting pressure on companies to lift wages to compensate for the hit to households.

March, which marks the end of the fiscal year for most Japanese companies, is a time when they formulate investment and operations strategies for the next period.