Tokyo (awp/afp) – Household consumption in Japan was higher than expected in October (+1.2% year on year in inflation-adjusted data), while continuing to slow down, according to figures published on Tuesday by the Ministry of Home Affairs.
The consensus economists of the Bloomberg agency were expecting a slightly weaker increase (+0.9%), after +2.3% in September and +5.1% in August.
But consumers did not skimp on spending on clothing (+14.9%) or leisure (+8%), as the country completely lifted its latest health restrictions in October, which limited its access. to foreign tourists.
Residents of the country also benefit from generous public subsidies for their trips within the country, which boosts tourist activity.
Such public aid is not too much to support consumption because inflation is currently reaching record levels in Japan (3.6% in October over one year excluding fresh products, unheard of since 1982), driven by the surge energy and food prices.
And this inflation is cutting into the purchasing power of Japanese households because it is not yet sufficiently offset by wage increases.
Real wages in Japan (adjusted for inflation) thus fell in October for a seventh month in a row and even experienced their worst drop since 2015 (-2.6% over one year), according to data published separately on Tuesday. by the Ministry of Labour.
Despite inflation, which has exceeded its 2% target for several months, the Bank of Japan (BoJ) is maintaining its ultra-accommodative monetary policy, believing that the conditions are not yet in place to tighten the screw, with an economy still fragile. and salary increases that are too limited.
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