Japan’s Households Cut Back Spending as Kishida Mulls Measures
- Inflation-hit consumers weighing on fragile economic recovery
- Kishida’s government to unveil economic measures this fall
This article is for subscribers only.
Japan’s households cut back spending in July as persistent inflation continued to erode purchasing power, adding pressure on the government to ramp up aid when it unveils a fresh batch of economic measures in coming weeks.
Outlays dropped 2.7% in July from the previous month, the biggest fall since February 2022, as consumers pared back outlays on cars and telecommunications, ministry of internal affairs data showed Tuesday. Spending was also down 5% from a year earlier, twice the amount forecast by analysts.