Household spending in Japan increased for 4 consecutive months

VTV.vn - Average spending of households with two or more people reached nearly 314,000 Yen (about 2,100 USD), up 2.3% over the same period last year after adjusting for inflation.

Household spending in Japan increased for 4 consecutive months

Household spending in Japan rose for a fourth consecutive month in August, showing positive signs of domestic consumption as people spent more on entertainment.

The average spending of households with two or more people reached nearly 314,000 yen (about 2,100 USD), up 2.3% compared to the same period last year after adjusting for inflation. Of which, spending on transportation and communication increased the most. Spending on culture and entertainment was also boosted by domestic and international tourism demand, as well as the influx of visitors to the World Expo held in Osaka. In addition, spending on energy and water increased due to the need for air conditioning in hot weather. Household spending data - an important indicator reflecting the health of private consumption - a factor that accounts for more than half of Japan's Gross Domestic Product (GDP).

In addition, the average monthly income of households with two or more people also increased 2.8% after adjusting for inflation, reaching 608,578 yen in August 2025.

Koichi Fujishiro, chief economist at Dai-ichi Life Research Institute, said that people have overcome the worst period and there is an expectation that spending will recover in the near future. According to this expert, that is the reason for the upward adjustment. In addition, the BoJ also assessed that personal consumption is currently stable. Therefore, considering the link between consumption and monetary policy, consumption is no longer a barrier to raising interest rates.

In a recent report, Mr. Fujishiro forecast the BoJ will raise its policy rate in October and could further increase it to 1% in the first half of 2026, from the current level of 0.5%.

Another report released on September 29 by Itochu Research Institute also predicted that the BoJ will raise interest rates in October 2025, saying that strong personal consumption and business investment have confirmed the economic upturn, with GDP in the second quarter of 2025 increasing 2.2% compared to the previous quarter.

The Cabinet Office’s economic report said the Japanese economy is “recovering at a moderate pace,” while the impact of US trade policy is mainly felt in the auto industry. The report also warned of the risks of a slowdown from US trade policy and a prolonged price increase, while noting that more attention should be paid to the risks of price increases.

Source: https://vtv.vn/chi-tieu-ho-gia-dinh-tai-nhat-ban-tang-4-thang-lien-tiep-100251007222945849.htm