More households see prices rising 1, 5 years from now survey
Data highlights growing inflationary pressures
BOJ39;s July meeting in focus, some doubt early tweak to low rates

TOKYO, July 12 Reuters Japanese households39; inflation expectations rose in the three months to June, a central bank survey showed on Wednesday, adding to growing signs that conditions for phasing out massive monetary stimulus may be falling in place.

The survey will be among factors the Bank of Japan BOJ will scrutinise in producing new inflation forecasts at its July 2728 rate review, and in deciding whether to maintain its yield curve control policy that sets a 0 cap on longterm yields.

The ratio of Japanese households expecting prices to rise a year from now stood at 86.3 in June, up from 85.7 in March to hit the highest level since June 2022, the BOJ survey showed.

Households expect inflation to average 10.5 a year from now, the June survey showed, down from 11.1 in the previous survey but well above the BOJ39;s 2 target.

The percentage of households expecting prices to rise five years from now also rose to a oneyear high of 79.0 in June from 75.4 three months ago, the survey showed.

The survey highlights how consumers continue to feel the pain from rising costs of living, even as falling global commodity prices moderate rises in wholesale inflation.

Households39; inflation expectations are among factors the BOJ looks at carefully in determining whether inflation will sustainably…