TOKYO (Reuters) - Fewer Japanese households expect prices to rise a year from now, a quarterly Bank of Japan survey showed on Friday, boding ill for the central bank’s efforts to achieve its elusive 2 percent inflation target.
The BOJ survey, conducted across 4,000 households over the month to Sept. 5, showed 70.4 percent of them thought prices will rise a year from now, down from 75.4 percent in the previous survey in June.
It also showed that 81.4 percent expect prices to rise five years from now, down from 82.3 percent in June.
Despite more than four years of aggressive money printing, the BOJ has failed to accelerate inflation to its 2 percent target, as companies remain wary of raising prices for fear of scaring away cost-sensitive consumers.
Subdued inflation has forced the BOJ to push back the timing for achieving its price target six times since deploying a massive stimulus programme in 2013.
Reporting by Leika Kihara; Editing by Sam Holmes