The forecast for inflation over the next year in Japan is 1.5 percent, the Bank of Japan said on Wednesday in the second half of its quarterly Tankan survey of consumer sentiment.
According to the all enterprise component, the inflation rate is expected to rise to 1.5 percent in the next year, then hit 1.7 percent over the next three years, and remain there in five years.
Among large manufacturers, inflation is expected to add 1.1 percent over the next year, and then rise to 1.3 percent in three to five years.
Among large non-manufacturers, inflation is called at 1.1 percent in the next year, 1.3 percent in three years and 1.2 percent in five years.
For small manufacturers, inflation is expected to hit 1.7 percent in one year before climbing to 1.9 percent in three to five years. Small non-manufacturers share the same view.
The forecast for output prices is more fluid.
According to the all enterprise component, output prices are expected to rise to 1.1 percent in the next year, rise to 1.8 percent in the next three years before hitting 2.1 percent in five years.
Large manufacturers are more pessimistic, with output prices adding just 0.2 percent in the next year, going flat in three years and falling 0.3 percent in five years.
Large non-manufacturers expect output prices to hit 0.9 percent in the next year before rising to 1.3 percent in three years and 1.5 percent in five years.
Small manufacturers see output prices up 1.2 percent in the next year, 1.7 percent in three years and 2.1 percent in five years.
Small non-manufacturers expect output prices to climb 1.7 percent in the next year before surging 2.8 percent in three years and 3.5 percent in five years.
The first portion of the Tankan was released on Tuesday.
Also on Wednesday, the BoJ said that the monetary base in Japan spiked 54.8 percent on year in March, standing at 208.592 trillion yen. That follows the 55.7 percent jump in February and the 51.9 percent increase in January.
Banknotes in circulation were up 4.0 percent on year, while coins in circulation added an annual 1.1 percent.
Current account balances surged 148.9 percent, including a 154.1 percent spike in reserve balances.
The adjusted monetary base was up 13.4 percent on year to 213.102 trillion yen.
For the first quarter of 2014, the monetary base climbed 54.1 percent on year.
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