The expected rise in consumer prices does not necessarily mean the economy will be free of deflation, as the gain mostly stems from rising oil prices, according to a survey released Tuesday by credit research agency Teikoku Databank.
The survey shows that fewer than 20 percent of firms expect the economy to come out of deflation, defined as a constant rise in the core consumer price index, by next spring.
Also, more than 70 percent of these firms believe the biggest factor supporting the CPI is crude oil and raw materials prices.
The Internet survey, which Teikoku Databank conducted from Oct. 21 to Oct. 31, covered 10,077 companies. It comes after several Bank of Japan policymakers have said in recent months that the time for the central bank to end its ultra loose monetary policy is nearing.
The CPI excludes volatile fresh food prices, but includes petroleum products, which prompted many respondents to say the rise in the CPI is not "real."
The survey also shows that 42.9 percent of the firms believe next spring would be too soon for the BOJ to end the easy money policy.
"Any expected rise in consumer prices is not real because it comes from surging oil prices," one transportation firm said in the survey.
Yasunari Ueno, chief market economist at Mizuho Securities Co. said, "If oil prices push up the CPI only briefly, it is not appropriate to conclude that the economy has moved out of deflation."
BOJ Gov. Toshihiko Fukui has repeatedly said the central bank will maintain its current policy until consumer prices rise in a sustained manner.