BOJ Surveys Shows Steady Inflation Expectations

        TOKYO--Japan Inc.'s inflation expectations remained steady in the three months to March, a Bank of Japan survey showed Thursday, an outcome that could reinforce its view that the underlying inflation trend remains in place despite a slide in the consumer price index to zero.
        About 11,000 companies polled by the central bank said the prices of consumer products will rise at an annual rate of 1.4% in one year, unchanged from the December survey, the BOJ said.
        The survey shows that companies' modest inflation expectations haven't been affected much by a slow recovery in consumer spending after a sales tax increase in April that tipped the economy into recession.
        Launched a year ago, the survey asks companies how fast they think the overall consumer price index--including volatile fresh food prices as well as energy but excluding the impact of the tax increase--will rise in one, three and five years.
        The survey showed that firms of all sizes and sectors expect the inflation rate to rise an unchanged 1.6% in a three-year time frame and 1.6% in five-years, down slightly from 1.7% previously.
        Companies expect their sales prices to rise 0.9% in one year, compared with 1.0% previously, and 1.7%, unchanged, in three-years. They see prices rising 2.2% in five years, up a tad from the previous foreast of 2.1%.
        The quarterly poll is a part of the BOJ's quarterly tankan survey of firms' business sentiment and their profit, hiring and investment plans.
        Write to Tatsuo Ito at tatsuo.ito@wsj.com
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        (END) Dow Jones Newswires

        April 01, 2015 20:40 ET (00:40 GMT)

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