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Japan Year-on-Year Household Spending Drops for 8 Straight Months
Rising costs for food and other basics kept consumers cautious even as spending rose 0.5% from June, the ministry said.
- Japan household spending fell 3.6% in July from a year earlier, marking the eighth consecutive month of declines, according to data released Friday by the Ministry of Internal Affairs and Communications.
- Consumers are curbing discretionary purchases as rising costs for daily necessities, particularly food, prompt widespread "inflation fatigue" despite steady wage growth across the economy.
- Teikoku Databank reported that planned price increases rose nearly 22% last month, with an 83% increase in such adjustments forecast for the coming months due to higher crude oil prices.
- Prime Minister Sanae Takaichi aims to address inflation by cutting sales tax on food and soft drinks to 1% for two years while extending gasoline price caps; the Bank monitors consumption to decide on interest rates.
- Economist Junwen Pang at Daiwa Institute of Research anticipates only moderate consumption growth ahead, while Friday data indicates a weak economic start to the third quarter as higher oil prices ripple across sectors.
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Household expenditure falls by 3.6 percent compared to the same month of the previous year. This results in the strongest decline in two and a half years and the eighth decline in a row.
·Vienna, Austria
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Japan year-on-year household spending drops for 8 straight months
·London, United Kingdom
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Amid rising prices, consumer spending in July fell for the eighth consecutive month. According to the household expenditure survey for July released by the Ministry of Internal Affairs and Communications, households of two or more people spent 301,245 yen on consumption, a real decrease of 3.6% compared to the same month last year, after adjusting for the effects of price fluctuations. Food spending was down 2.5%, with "seafood" down 6.1% and "p…
Coverage Details
Total News Sources10
Leaning Left0Leaning Right3Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
C 57%
R 43%
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