Japan’s Ministry of Communications and Home Affairs reported today that Household spending in Japan fell 2.3% in March on a year-on-year basis. This was the first drop in three months as the household sector spent less on food.
Average spending for households with two or more family members was 307,261 yen ($2,360) in March, down 2.3% from the same period last year.
A Japanese government official said the war between Russia and Ukraine has led to rising prices of energy, food and other commodities, and the government will closely monitor the situation.
Household spending in March slowed down. After a strong 6.5% gain in February, Japan’s household spending rose 1.6 percent in 2021, the first increase in four years, helped by the government’s lifting of the COVID-19 measures.
The ministry’s report also stated that the median monthly household income rose 2.3% to 503,128 yen, after a 0.1% drop in February.
Household expenditure is considered an indicator of private consumption and accounted for more than half of Japan’s gross domestic product (GDP).