Japan's Household Spending Declines for the Second Consecutive Month

In Japan, household spending fell in September, continuing the trend from August. High prices have dampened consumer appetite, serving as a discouraging sign for the central bank's plans to further increase interest rates. Consumer spending in September decreased by 1.1% compared to the same period last year, while the median forecast in the market was a decline of 2.1%. On a seasonally adjusted monthly basis, a drop of 1.3% was recorded against a forecasted decline of 0.7%.

Takeshi Minami, the chief economist at the Norinchukin Research Institute, stated, "There are one-time jumps in consumption, but they do not last long." An official from the Ministry of Internal Affairs mentioned that households continue to cut food spending, opting for cheaper alternatives like chicken instead of beef, and saving more of their income. The official noted that average consumer spending from July to September fell by 1.0% compared to the same period last year.