Japan's spending bounces back in November—here's what's up
In November, Japanese households spent 2.9% more than last year, bouncing back after a rough October.
This jump came right before the Bank of Japan hiked interest rates, and monthly spending actually shot up by 6.2%—way above predictions and the fastest pace since March 2021.
What drove the surge?
A government official pointed to "auto-related and other volatile expenses" as big reasons for the spike, but said that doesn't tell the whole story.
Food spending finally ticked up after six months, with people eating out more thanks to extra holidays in November.
The catch: higher rates but lower real wages
Even with all this spending, inflation is still outpacing wage growth.
The Bank of Japan just raised its key rate to a 30-year high (0.75%), but real wages actually dropped by 2.8%.
That mismatch between what people are earning and what they're spending could shape where Japan's economy goes next.