Japanese Household Spending Falls for Ninth Straight Month

Japan's Ministry of Internal Affairs and Communications released data on Friday showing that despite rising wages, household consumption has declined for the ninth consecutive month as persistent inflation erodes purchasing power and consumer sentiment remains cautious. Inflation-adjusted real household spending in August fell 3.1% year-on-year, better than economists' expected drop of 3.6%, while seasonally adjusted figures rose slightly by 0.1% month-on-month. The latest weak consumption data complicates the Bank of Japan's policy communication, though authorities plan to continue raising interest rates. While real wages in Japan have risen for consecutive months this year, they have failed to spark a recovery in spending. In an aging society, more retirees are unable to benefit from wage increases.