The upcoming Bank of Japan tankan survey could indicate a further upward shift in corporate inflation expectations, says Mizuho Securities economist Ryosuke Katagi. Given that oil prices have been high since the previous March survey, companies could raise their price outlooks in the June report, he says. If that happens, it would likely heighten the BOJ's concerns about the possibility that underlying inflation will overshoot the bank's 2% target, he adds. In the March survey, companies said they expect overall prices to rise 2.6% one year ahead, higher than the previous forecast for a 2.4% increase. (megumi.fujikawa@wsj.com)
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Japan Tankan Corporate Inflation Forecasts Closely Watched — Market Talk
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The upcoming Bank of Japan tankan survey could indicate a further upward shift in corporate inflation expectations, says Mizuho Securities economist Ryosuke Katagi. Given that oil prices have been high since the previous March survey, companies could raise their price outlooks in the June report, h…