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Over 80% of Japan households expect prices to rise a year from now -BOJ -Breaking

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© Reuters. FILE PHOTO – A woman in Tokyo holds her shopping bag while she waits for a bus at the Ginza pedestrian crossing, Tokyo, Japan. March 24, 2016. REUTERS/Thomas Peter

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TOKYO, Reuters – Japanese households are more likely to expect an increase in inflation over the next year according to a survey by the central bank on Thursday.

Survey respondents expected prices to increase by 84.3% in a year. This is up from the 78.8% they predicted three months ago.

This survey was conducted between February 4th and March 2nd. It also revealed that 82.1% households expected prices to increase in five years. This was a significant increase from the 80.8% reported in January’s previous survey.

This survey will be among the data that Bank of Japan may analyse during this month’s policy meetings to determine if rising fuel and raw material costs have affected consumer perceptions of price movements in future.

The BOJ does not have the same flexibility as central banks of other advanced countries, which raise interest rates to reduce inflationary pressures. Japan is still in a slump that was caused by a pandemic.

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