TOKYO, July 7 (Reuters) – Japanese households were the most pessimistic about the economy in more than a decade in the three months to June, a central bank survey showed on Tuesday, underscoring the devastating impact the coronavirus pandemic has had on consumption.
The pandemic also weighed on inflation expectations, the BOJ survey showed, reinforcing expectations the health crisis will slow the bank’s push to hit its elusive 2% price target.
The diffusion index measuring households’ confidence on the economy stood at -71.2 in June, worsening from -36.3 in March to hit the lowest level since September 2009, the quarterly BOJ survey on households showed on Tuesday.
Of the total households surveyed, 66.7% expected prices to rise a year from now, down from 68.4% in March, according to the survey conducted between May 8 to June 3.
(Reporting by Leika Kihara; Editing by Sam Holmes)