The Bank of Japan Tankan report highlights that firms' inflation expectations are still very high.

Tankan corporate price expectations survey:

  • Japan firms expect consumer prices to rise 2.5% a year from now vs +2.6% in prev survey
  • Japan firms expect consumer prices to rise an annual 2.2% 3 years from now vs +2.2% in prev survey
  • Japan firms expect consumer prices to rise an annual 2.1% 5 years from now vs +2.1% in prev survey

Analysts comments seem to be along the lines that inflation expectations are moderating. And, if you check out the previous expectations they are. But they seem to be kidding the bigger pic, which is that expectations are still above target. Out for 5 years!!! How long is 'transitory', folks?

From the rest of the report, Headlines via Reuters:

  • Sept big manufacturers index +9(expected: 6)
  • Dec big manufacturers index seen at +10(: 5)
  • Sept big non-manufacturers index +27(expected: 24)
  • Dec big non-manufacturers index seen at +21(expected: 22)
  • Sept small manufacturers index -5(expected: -4)
  • Dec small manufacturers index seen at -2(expected: -4)
  • Sept small non-manufacturers index +12(expected: 12)
  • Dec small non-manufacturers index seen at +8(expected: 9)
  • Japan all firms see dollar averaging 135.75 yen for fy2023/24
  • Japan all firms see euro averaging 144.62 yen for fy2023/24
  • Japan big manufacturers see dollar averaging 133.91 yen for fy2023/24
  • Sept all firms employment index -33
  • Sept all firms financial condition index +11 vs june +11
  • Sept big manufacturers' production capacity index +1 vs june +2
  • Japan big manufacturers see fy2023/24 recurring profits -5.0%
  • Japan big firms see fy2023/24 capex +13.6% (expected: 13.6%)
  • Japan small firms see fy2023/24 capex +8.0% (expected: 4.4%)
BoJ
BoJ

Over the weekend from Ueda: