Inflation Expectations Surge
Japan Consumer Confidence Dips Slightly While Household Inflation Expectations Top Ninety Percent
Anonymous
Japan’s consumer confidence index edged down to 35.4 in September from 35.5 in August, its first monthly decline in five months, though the reading was slightly above expectations. Households reported weaker views of their overall livelihoods and willingness to buy durable goods, while assessments of employment and income growth improved marginally. Inflation concerns intensified: 90.6% of households expected prices to rise over the next year, with nearly half of respondents anticipating increases of at least 5%. Food and beverage price hikes may have contributed to the more cautious mood, but officials said the precise effect of prices on the confidence index was unclear; the Cabinet Office maintained its assessment that the economy shows signs of recovery.
Key Points
1
The survey defines the index as a seasonally adjusted measure of sentiment over the coming six months among households of two or more people.
2
The share expecting prices to rise by at least 5% increased 1.5 percentage points from August, reaching 47.6% in September.
3
The article links the September food and beverage price hikes to rising crude oil prices amid worsening Middle East tensions, which increased packaging-material costs.
4
The September reading was above the expected 35.3, and the survey covered 8,400 households.
Sentiment
Mostly NegativeNEGATIVENEUTRALPOSITIVE
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