Inflation expectations on general prices (one, three, and five years ahead) Let us now examine the outlook for general prices, as measured by the CPI. The responses are chosen from ten options, ranging from “around plus 6 percent or higher” to “around minus 3 percent or lower” (categorized in 1 percent increments), and “Don’t have clear views” with three sub-categories (on general prices).
The average inflation outlook for “all firms, all industries” is 1.4 percent for one year, 1.6 percent for three years, and 1.7 percent for five years ahead, and shows a rising trend as the projection period increases from one to five years ahead (Chart 7). I will now elaborate on three observations on these results.