Japanese household spending fell 6.8% year over year in September, its tenth consecutive monthly decline and the largest drop since September 2020; the result was worse than the 3.1% decline economists expected. Seasonally adjusted spending also fell 2.8% month over month, and the data will inform the Bank of Japan’s decisions on further rate increases.
The weaker spending figures may complicate the case for BoJ rate hikes and weigh on the yen, potentially making dollar-priced imports more expensive for Japanese buyers. No specific feed-commodity supply or demand change is reported.
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