Japan's household spending falls for 9th month, down 3.1% year-on-year
Japan's households spent less for the ninth month in a row this August, down 3.1% compared to last year.
Even though wages are up, inflation is still making it tough for people to keep up with costs, according to government data released Friday.
Japan utilities down 5.2%, education falls
Spending dropped in some categories: education, entertainment, food, rent, and especially utilities (down 5.2%).
Some of the dip in education spending comes partly because of subsidies and other measures that Prime Minister Sanae Takaichi introduced to curb the cost of living.
On the flip side, transport and communications were the only categories that did not record a decline, as spending on cars edged higher.
Markets expect Bank of Japan hike
This steady drop in household spending is putting pressure on Japan's central bank as it tries to balance inflation and economic growth.
With weak demand at home and prices still rising, many market participants bet that the central bank would raise its benchmark interest rate again by the end of the year.