Japan households’ inflation expectations rise slightly

TOKYO, Oct 15 (Reuters) - Japanese households’ price forecasts rose slightly in the three months to September, a quarterly central bank survey showed on Friday.

The forecast underscored the pain households are feeling from rising living costs due to imports of raw materials boosted by a weaker yen.

The survey is among key factors that the Bank of Japan (BOJ) will scrutinize in producing new inflation forecasts at its Oct. 30-31 policy review. The BOJ is expected to raise inflation projections for the current fiscal year.

The BOJ’s September survey showed 86.8 percent of Japanese households expect prices to rise a year from now, a tad higher than 86.3 percent in June.

The survey also found that with a weaker yen boosting the cost of living, the number of well-off householders declined while the proportion of those who are ill-off has grown. ...continue reading