Japan households expect prices to keep rising, survey shows
A Japanese flag flutters atop the Bank of Japan headquarters in Tokyo, Japan December19, 2025. REUTERS/Manami Yamada
TOKYO, Jan 19 : Most Japanese households expect prices to keep rising for the next few years, a central bank survey showed on Monday, reinforcing expectations the country was seeing conditions fall into place for further increases in still-low interest rates.
The ratio of households who expect prices to rise a year from now stood at 86.0 per cent, a Bank of Japan survey for December showed, compared with 88.0 per cent three months earlier.
On average, households expect prices to rise 11.6 per cent a year from now, compared with 11.9 per cent in the September survey, a sign rising living costs are keeping household inflation expectations elevated.
In the quarterly survey, 83.0 per cent of households expect prices to rise five years from now, lower than 84.8 per cent in the previous poll.
The BOJ abandoned a decade-long, massive stimulus in 2024 and raised interest rates, including to 0.75 per cent from 0.5 per cent in December, on a growing conviction that solid wage gains would keep inflation around its 2 per cent inflation target.
While the central bank is widely expected to keep rates steady this week, some policymakers see scope to raise rates sooner than markets expect as the decline in the yen risks broadening inflationary pressure, sources have told Reuters.
Annual core consumer inflation hit 3.0 per cent in November, exceeding the BOJ's 2 per cent target for nearly four years. The price of food, excluding volatile prices of fresh food like vegetables, rose 7.0 per cent in November from a year earlier, in a sign of the pain inflation is inflicting on households.
