Japanese households cut spending for eighth month as prices rise
Japanese household spending fell for the eighth consecutive month in July, dropping 3.6% as inflation continues to impact consumer purchasing power. Rising costs for energy and food, exacerbated by Middle Eastern tensions, are driving households to cut back on discretionary items.
Why it matters
Persistent declines in household spending signal ongoing economic fragility in Japan, complicating the central bank's efforts to stimulate growth.
Japanese households cut spending for an eighth consecutive month in July as rising costs for daily necessities prompt consumers to pare discretionary purchases.Household outlays adjusted for inflation fell 3.6% from a year earlier, the internal affairs ministry reported Friday. Economists had forecast a 1.6% decline.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in