Japan Household Spending Down 0.5 Pct in April

Tokyo, June 5 (Jiji Press)–Household spending in Japan fell 0.5 pct in April from a year earlier in inflation-adjusted real terms, down for the fifth straight month, the internal affairs ministry said Friday. Average spending by households comprising two or more members stood at 328,969 yen. Consumers continued to curb spending on food, such as buying cheaper rice. Still, the size of drop in overall consumption shrank from March’s 2.9 pct. Food spending slipped 0.6 pct, down for three months in a row. Purchases of rice dropped 7.8 pct, marking the sixth consecutive month of decline. Electricity and gas bills fell 11.0 pct and 6.9 pct, respectively, as households tended not to use heating equipment due to higher temperatures than a year before. Meanwhile, automobile-related spending jumped 19.3 pct. More car owners bought replacement vehicles, encouraged by the abolition of the automobile environment performance tax at the end of March. Expenditures on household consumables increased 9.3 pct. Among them, purchases of plastic bags and wraps surged 42.7 pct, with households moving to stock up these items out of concern about price hikes amid Middle East tensions. END [Copyright The Jiji Press, Ltd.]