More than 90% of Japanese households now expect prices to rise over the next 12 months, according to a new survey by the Bank of Japan.
The figure marks a notable increase from the previous quarter, signaling that inflationary pressures are becoming deeply entrenched in consumer sentiment rather than remaining a transient headline phenomenon.
This shift in household expectations is critical for the Bank of Japan’s policy calculus.
Central banks increasingly view consumer confidence in rising prices as a self-fulfilling prophecy that can anchor inflation above target levels.
With the BoJ having recently exited its long-standing negative interest rate policy, this data provides additional justification for continued, albeit gradual, monetary normalization.
The survey results corroborate recent official data showing accelerating inflation across the Japanese economy.