While it is difficult to measure those expectations, as they are formed by a wide range of economic entities, break-even inflation – that is, the yield spread between fixed-rate coupon-bearing JGBs and inflation-indexed JGBs, and representative of the expected rate of inflation in the market – and figures collected from the results of surveys summarizing the views of researchers and economists at home and abroad show that inflation expectations are gradually rising as the QQE proceeds.
Moreover, according to the recent Opinion Survey on the General Public’s Views and Behavior conducted by the Bank, the share of respondents who expected that prices will go up one year from now reached as high as 83 percent. This suggests that inflation expectations in the household sector are also on the rise (Chart 1).