This report details the results of the Bank of Japan's 102nd "Public Opinion Survey on Household Financial Behavior" conducted from May 1 to June 3, 2025 (sample size: 4,000, valid responses: 2,016, response rate: 50.4%), examining changes in public attitudes toward living conditions and economic perceptions.
The survey reveals a significant deterioration in public economic sentiment compared to the previous survey. The economic conditions DI compared to one year ago worsened by 7.2 points from -59.8 in the March survey to -67.0, indicating that many respondents continue to perceive economic deterioration. More notably, the one-year forward economic conditions DI also deteriorated by 6.8 points from -37.1 to -43.9, suggesting declining expectations for the future. The living conditions DI worsened by 5.2 points from -52.0 to -57.2, reflecting increasing household financial strain.
Regarding price perceptions, 75.3% of respondents indicated that prices had "risen significantly" compared to one year ago, with three out of four people strongly experiencing price increases. Looking ahead, 33.4% expect prices to "rise significantly" over the next year, demonstrating persistent expectations of continued inflationary pressure. As high prices persist, the survey results indicate heightened defensive attitudes toward spending and increased caution in consumption behavior.
Trust in the Bank of Japan declined significantly, with the percentage responding "trust" falling 7.5 points from 48.8% to 41.3%, well below the majority threshold. The erosion of confidence in the central bank appears to stem from dissatisfaction with monetary policy management amid persistent inflation and unfulfilled expectations for improved living conditions. Questions about the BOJ's price stability mandate may particularly contribute to declining trust.
The article demonstrates through specific data how the three interconnected elements of deteriorating economic sentiment, persistent inflation, and declining trust in the BOJ reflect an overall worsening of public economic consciousness, highlighting the severity of challenges facing the Japanese economy.