Tokyo: Japanese households' average inflation expectations for the next five years have risen to a record high, as revealed by a recent Bank of Japan survey on Thursday. According to Anadolu Agency, households are now anticipating an average annual price increase of 10.8% over the coming five years. This marks an increase from 10.3% in the previous quarterly survey and 9.8% in December. This figure represents the highest level since the bank began conducting the survey with its current methodology in 2006, although the median expectation has remained steady at 5%. The survey highlights that 51.3% of respondents expect prices to rise significantly over the next five years, an increase from 46% in March. In addition, 34.8% anticipate a slight rise in prices, bringing the total proportion of those expecting higher prices to 86.1%. For the upcoming year, 90.4% of respondents foresee a price increase, with 40.5% predicting a significant rise. In terms of interest rates, the proportion of households that conside r them too high has reached a record 24%, up from 22% in March. Meanwhile, 33.3% of respondents believe interest rates are too low, while 40.8% find them appropriate. The survey was conducted between May 7 and June 9, with participation from 4,000 individuals aged 20 or older, resulting in 2,031 valid responses. The survey results follow the Bank of Japan's decision to raise its benchmark interest rate to 1% in June, marking its highest level since 1995.