TOKYO :Japanese households' inflation expectations rose slightly in the three months to September, a central bank quarterly survey showed on Friday.
The survey will be among factors that the Bank of Japan (BOJ) will scrutinise in producing new inflation forecasts at its Oct. 30-31 policy review.
The ratio of Japanese households expecting prices to rise a year from now stood at 86.8 per cent in September, a tad higher than 86.3 per cent in June, the BOJ survey showed.
Households expect inflation to accelerate by an average 10.7 per cent a year from now, versus 10.5 per cent seen in June, the September survey showed.
The percentage of households expecting prices to rise five years from now rose to 80.7 per cent in September from 79.0 per cent in June.
The survey underscores the pain from higher living costs of fuel and food, with renewed tension between Israel and the occupied Palestinian territory of the Gaza strip casting dark clouds over oil supply, possibly boosting the cost of fuel further.
Households' inflation expectations are among factors the BOJ scrutinises in ascertaining whether inflation will sustainably achieve its 2 per cent target on the back of solid wage gains - a prerequisite for dialling back its stimulus programme.