Household spending in Japan fell by the most in 35 months in January. Consumers tightened their purse strings for food purchases as prices increased. Government officials blamed one-off factors for the size of the drop.
Data released by the internal affairs ministry on Friday shows households of two or more spent an average of 289,467 yen, or around 1,900 dollars.
That is down 6.3 percent from a year earlier, adjusted for inflation and marks the 11th straight month of declines.
Households reduced spending on food by 2.7 percent. The cutbacks came amid continuing inflationary pressure.
Internal affairs ministry officials say the large fall in the headline index does not mean the trend in consumption is getting worse.
Vehicle purchases tumbled 30.4 percent as factory suspensions squeezed supply. Daihatsu Motor halted all domestic output in the period, after it was found to have faked safety certification tests.
People also spent less on travel and accommodation compared to a year earlier when they benefited from post-pandemic travel subsidies to stimulate the economy.
Data released by the internal affairs ministry on Friday shows households of two or more spent an average of 289,467 yen, or around 1,900 dollars.
That is down 6.3 percent from a year earlier, adjusted for inflation and marks the 11th straight month of declines.
Households reduced spending on food by 2.7 percent. The cutbacks came amid continuing inflationary pressure.
Internal affairs ministry officials say the large fall in the headline index does not mean the trend in consumption is getting worse.
Vehicle purchases tumbled 30.4 percent as factory suspensions squeezed supply. Daihatsu Motor halted all domestic output in the period, after it was found to have faked safety certification tests.
People also spent less on travel and accommodation compared to a year earlier when they benefited from post-pandemic travel subsidies to stimulate the economy.
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Summary
Japan's household spending decreased by 6.3% in January, marking the 11th consecutive monthly decline after adjustment for inflation. This drop was due to reduced food and travel expenditures, amid ongoing inflationary pressures. The decrease in food spending was 2.7%. Vehicle purchases dropped
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ID: c4965268-82ad-456c-9bff-499717e8ef86
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20240308_24/
Date: March 8, 2024
Created: 2024/03/11 06:30
Updated: 2025/12/08 16:37
Last Read: 2024/03/11 12:39