Tokyo, April 12 (Jiji Press) – A recent survey conducted by the Bank of Japan reveals that a significant majority of Japanese households anticipate rising prices over the next year. According to the findings released on April 11, 2025, approximately 86.7% of households surveyed expect prices to climb within the next year, a slight increase from 85.7% reported in the previous survey conducted in December 2024.
The survey, which included responses from individuals aged 20 and older, was conducted between February 6 and March 4, 2025. It also showed that 83.5% of respondents expect prices to rise over the next five years, up from 82.5% in the December survey. This growing concern about inflation reflects broader economic trends affecting the nation.
In terms of inflation forecasts, the average projection for the coming year has risen to 12.2%, compared to 11.5% in the previous survey three months ago. This increase comes at a time when many consumers are feeling the pinch of rising costs across various sectors.
Moreover, the survey indicated that 96.1% of respondents believe that current prices are higher than they were a year ago, up from 95.1% in the previous survey. The estimated inflation rate for the past year stands at 19.1%, an increase from the previous estimate of 17%. These figures paint a concerning picture of the economic landscape in Japan.
The diffusion index, which measures the percentage of respondents reporting improving livelihoods against those reporting worsening conditions, remains in negative territory at minus 52.0, slightly better than the minus 52.4 recorded in the last survey. This suggests that while some individuals may be experiencing wage growth, many others are still struggling with the impact of price increases.
The Bank of Japan (BOJ) has suggested that the adverse effects of soaring food prices have been somewhat alleviated by rising wages. However, the persistent inflationary pressures raise questions about the sustainability of this trend and its implications for household budgets.
As consumers brace for higher prices, the sentiment captured in the survey underscores the growing anxiety about the cost of living in Japan. With the economy facing challenges, including supply chain disruptions and global inflationary trends, many households are left wondering how their financial situations will evolve in the coming months.
Experts are closely monitoring these developments, as the BOJ’s policies and responses to inflation will play a crucial role in shaping the economic outlook. The central bank’s commitment to maintaining a stable economic environment will be tested as households adjust their expectations and spending habits in light of rising prices.
In summary, the survey results highlight a significant shift in consumer sentiment regarding inflation in Japan. With a large majority of households anticipating price increases, the economic landscape appears increasingly precarious. The BOJ’s ability to navigate these challenges will be critical as the nation seeks to stabilize its economy amidst rising global pressures.
