One-Year Inflation Expectations Hit Record 90.4%, Middle East Situation a Factor

Macro
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In the Bank of Japan's June Opinion Survey on the General Public's Views and Behavior, the proportion of respondents expecting prices to rise one year from now reached 90.4%, surpassing the previous record of 88.9% set in June 2008. This marks a 6.7 percentage point increase from the March survey, indicating that inflation expectations are spreading among consumers. A Bank of Japan official analyzed that the worsening Middle East situation and corporate price-hiking behavior were contributing factors, with the average expected price change one year ahead also hitting a record high of plus 13.1%.

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