TOKYO, May 10 (News On Japan) – According to the household survey of the Ministry of Internal Affairs and Communications, real consumer spending in households of two or more people fell by 3.2% in the 2023 fiscal year compared to the previous year. This is the first decline in three years, which is directly affected by rising prices.
This decline follows the 5.1% decline in 2014, driven by the consumption tax increase, and a 4.9% decline in 2020 due to the effects of COVID-19, making it the third largest decline in in recent years.
Factors such as a 1.9% drop in food costs indicate that higher prices have led to fewer purchases among consumers.
In March, real incomes of working households also fell by 0.1%, representing eighteen consecutive months of decline. The Ministry of Internal Affairs and Communications analyzes that wage increases have not kept pace with the rising cost of living.
Source: ANN
