The Ministry of Internal Affairs and Communications in Chiyoda Ward, Tokyo
17:16 JST, May 10, 2024
Tokyo, May 10 (Jiji Press) – Japan’s household spending fell 3.2% in price-adjusted real terms from the previous year in the 2023 fiscal year ended in March, the first decline in three years, according to data released by the interior ministry Friday.
The average monthly consumption expenditure of households with two or more members was ¥294,116.
Spending fell in all ten categories, including food and utilities, driven by higher prices.
While total expenditures rose compared to the average of ¥291,235 in fiscal year 2019, before the COVID-19 pandemic, a ministry official said “consumption expenditures have not returned to pre-pandemic levels” as an account inflation is taken into account.
Spending on food fell by 1.9%. The Engel’s coefficient, which indicates the share of food costs in household expenditure, has increased because food prices have risen at a slightly faster pace than the prices of other items.
Utilities expenditures fell 3.7% and housing expenditures fell 6.9%.
In March alone, household spending averaged ¥318,713, down 1.2% from a year earlier, marking a decline for 13 consecutive months.
While spending on cars and dining out increased by 44.5% and 8.7% respectively, electricity bills fell by 19.2% due to warmer temperatures.
