Japanese households were the most pessimistic about the economy in more than a decade in the three months to June, a central bank survey showed today.

The survey underscored the devastating impact the coronavirus pandemic has had on consumption. 

The pandemic also weighed on inflation expectations, the Bank of Japan survey showed, reinforcing expectations the health crisis will slow the bank's push to hit its elusive 2% price target. 

The diffusion index measuring households' confidence on the economy stood at -71.2 in June, worsening from -36.3 in March to hit the lowest level since September 2009, the quarterly survey on households showed today.

Of the total households surveyed, 66.7% expected prices to rise a year from now, down from 68.4% in March, according to the survey conducted between May 8 to June 3.