Is the Abe/BOJ deflation fight starting to show signs of upcoming success?
The Wall Street Journal reports on the Cabinet Office’s consumer sentiment survey for March, which shows 71.8% of households expect prices to rise over the next 12 months; “the government said that a significant percentage of respondents are expecting prices to rise more than the 2% inflation target” set by the BOJ.
The Journal adds:
Expectations that prices will rise are a necessary precursor for inflation to kick in as sentiment has a significant influence over purchasing decisions.
Over 70% of Japanese Expect Prices to Rise (gated)
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Japan’s Nikkei is carrying a report we highlighted earlier with the headline:
BOJ to raise CPI forecast, may set spring 2015 goal for 2% inflation target
