Global Economy & Policy Insight Weekly

Research evidence excerpt

Global Economy & Policy Insight Weekly

Global Economy & Policy Insight

Weekly

8 July 2026

June Tankan suggests price pass-through is shifting

risk from corporate profits to personal consumption TakahideNomura ResearchKiuchi is Institute.executiveThiseconomistis his at

personal view.

Summary: The Bank of Japan (BOJ) announced the results of its June Tankan survey Takahide Kiuchi

t-kiuchi@nri.co.jp

on 1 July. Corporate business sentiment was better than expected, most likely due to

the improved situation in the Middle East since June and falling crude oil prices being

more strongly reflected in the survey than expected. Strong corporate sentiment may

also reflect companies’ success in passing on cost increases to the prices of their

products and services. The June Tankan survey results indicate a shift in focus from

the deterioration in corporate earnings due to rising crude oil prices to the rise in

consumer prices due to price pass-through and the resulting negative impact on

To receive this publication, pleasepersonal consumption. The survey’s results showing increases in corporate business

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sentiment, price DIs, and enterprises’ inflation outlook should support additional BOJ representative.

rate hikes. The DIs for enterprises’ financial position and financial institutions’ lending

attitude, two key points for the BOJ, both came in at about the same levels as in the

previous survey in March, indicating that Japan’s financial environment remains

favorable. However, the Takaichi administration plans to include some content

intended to discourage rate hikes by the BOJ in its Basic Policy on Economic and

Fiscal Management and Reform (Basic Policy) to be announced this month. Future