The 2.7% increase from a year ago, in real terms, sharply beat Reuters expectations of a 0.2% rise.
Average household expenditure in Japan stood at 352,633 yen in December, up 7% in nominal terms from the previous year and 2.7% higher in real terms.
The figure sharply beat Reuters expectations of a 0.2% rise, boosting the case for another interest rate hike from the Bank of Japan., average household expenditure in Japan stood at 352,633 yen in December, up 7% in nominal terms from the previous year. While LSEG estimates after the spending data release indicated that there is a 95.7% probability of the BOJ holding rates at its next meeting on March 19, there is a 21.2% chance of a hike at its May meeting.
The head of the Japanese Trade Union Confederation, or Rengo, said in January that annual pay increases for Japanese workers in 2025 must be higher than the 5.1% growth last year because real wages continue to fall,revealed that real wages have fallen for the past three years, with real wages dropping 0.2% year on year in 2024.
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