Japan households see prices rising more a year from now survey
Prices are seen up five years from now
More time needed to turn costpush inflation into demandpull
Inflation expectations in focus as wage hikes, prices in uptrend

TOKYO, April 12 Reuters More Japanese households are expecting prices to rise a year from now, a Bank of Japan survey showed, reflecting stubborn inflation and heaping pressure on the central bank to adjust or ditch its yield curve control.

Speculation has been rife in markets that the BOJ may soon phase out yield curve control YCC, a prolonged policy that caps the 10year bond yield around zero, which has fuelled worries about sideeffects and market distortions.

The BOJ39;s quarterly survey on households is among data closely scrutinised by the central bank to determine the outlook for inflation.

The survey results will likely keep alive speculation over the BOJ39;s moves, given prospects for higher wage growth and broader price hikes that raise living costs for households and businesses.

Although inflation has nearly doubled the BOJ39;s 2 target, the central bank has repeatedly said it was not the kind of desirable inflation driven by private demand and wage growth.

Rather, what39;s causing prices to rise in Japan is costpush inflation, it said.

The survey showed that the ratio of Japanese households expecting prices to rise a year from now stood at 85.7 in March, rising from 85.0 in December.

The ratio of households expecting prices to…