Household spending in Japan fell 1.3% in December from a year earlier, according to government data released on February 7, The Mainichi newspaper reported.
Thus, this indicator has been falling for the second consecutive month. The decline comes amid falling spending on housing costs, such as upkeep.
The Ministry of Internal Affairs and Communications reports that Japanese households of two or more people spent an average of 328,114 yen (about 175,000 rubles at current exchange rates). Seasonally adjusted, spending decreased by 2.1%.
The data is a key indicator of private consumption, which accounts for more than half of the country’s gross domestic product, according to the newspaper.
Earlier, Japanese media reported that real wages in Japan fell 0.9% in 2022 compared to the previous year. This happened for the first time in two years.
Let’s remember that for a long time the government tried to accelerate inflation to the 2% target. However, in the second half of last year, the country faced rising prices, as a result, the consumer goods index increased by 4%.
In early February, Japan’s cabinet ministers said that rising prices were hurting Japanese consumers, especially young people. Spending has been reported to have plummeted during the novel coronavirus pandemic. In addition to rising prices, the drop may reflect “growing concerns about future pension payments and the sustainability of the national social security system due to the aging of society”noted in the Cabinet.
Source: Rossa Primavera
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