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Economic Buzz: Japan household spending falls further in March amid inflation pressure
12-May-2026 10:12
Household spending in Japan dropped 2.9% in March 2026 compared to a year earlier, marking the fourth straight month of decline as rising prices continued to weigh on consumer budgets.

The fall was steeper than February's 1.8% decline and worse than market expectations of a 1.3% drop, according to the Ministry of Internal Affairs & Communications.

Spending declined across several key categories, including food, utilities, clothing, and transportation and communication. Spending on transportation and communication saw the sharpest drop.

Meanwhile, growth in spending on culture and recreation slowed significantly compared to the previous month.

On the other hand, households spent more on housing, furniture and household items, healthcare, and education. Healthcare spending recorded a particularly strong increase during the month.

On a monthly basis, household spending fell 1.3% after rising 1.5% in February, also missing expectations for a modest increase.

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