AI Data Insight
Japan's nominal household consumption expenditure in the first quarter of 2026 reached 351.7 trillion yen, growing by approximately 1.01% from 348.2 trillion yen in the previous quarter and setting a new record high. Despite the impressive nominal consumption data, real consumption only grew by 0.3% quarter-on-quarter, indicating that the weak yen and high prices continue to erode real purchasing power. Looking ahead, whether the high wage adjustments from the Shunto (spring wage offensive) can practically translate into domestic demand momentum will be the key to whether the Japanese economy can completely break free from the headwinds of deflation and inflation.