Inflation: Japan – Consumer spending unexpectedly drops sharply
Rising living costs are putting increasing pressure on Japanese consumers. Weak domestic demand could also play a role in the upcoming interest rate decision by the central bank.
Japanese consumers unexpectedly cut their spending in July, sparking concerns about weak domestic demand. Household spending fell 3.6 percent from the same month last year, the largest decline in two and a half years and the eighth consecutive drop. According to analysts, rising living costs are the reason for the decline, with consumers spending more on entertainment and household goods but cutting back on food and transportation.
The Bank of Japan is closely watching the data, which will inform its decision on a possible interest rate hike later this month.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
