Japan: corporate inflation expectations
Published 3 July 2014
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0.1 Detail
Data released on 2 July by the Bank of Japan (BOJ) shows that inflation expectations (measured as CPI excluding tax rises) by Japanese firms are largely unchanged over the last 3 months. Businesses are forecasting a CPI level of 1.5% in 12 months time - unchanged from its previous survey in March 2014 – and 1.6% (-0.1%) in three years and 1.7% (u/c) in five years time.
The data also provided expectations on the sales price outlook by firms. Firms see these rising by 1.1% in 12 months time (u/c) and 1.9% (+0.1%) in three years and 2.3% (+0.2%) in five years.
0.2 Comment
The data shows that smaller firms have consistently higher expectations of both future inflation expectations and sales prices than larger firms surveyed by the BOJ. Some commentators have suggested that this could be as they are more impacted by tighter labour markets and higher input costs than larger firms.
While this data is interesting, it’s important to recognise that this is only the second time the BOJ have published this quarterly survey.
0.3 Disclaimer
The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.