Japanese household inflation expectations surge. Here is what it means for the economy

A recent survey by the Bank of Japan shows that Japanese families now think prices will go up more in the next three months up to early March.

According to a Reuters report, the survey, conducted from February 8 to March 5, finds more people worry about future price rises.

Over 83 per cent of the families think prices will climb a year from now. This is up from 79.3 per cent in the last check three months ago.

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The survey also finds a jump in how many see prices going up in five years, at 80.6 per cent, higher than 76.5 per cent before.

The Bank of Japan watches what families think about price rises to see if inflation will stay at its 2 per cent goal.

Governor Kazuo Ueda told the Asahi newspaper last week that price rises might pick up from "summer towards autumn" due to expected big pay raises pushing prices up.

The new survey highlights how Japanese families feel sure that prices will keep rising soon and later on.

This puts more pressure on the Bank of Japan's policymakers to keep their money plans in line with their price rise goals.

As Japan moves through economic uncertain, the central bank's moves will remain key in setting the country's price rise path.

(With inputs from Reuters)

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