AI Data Insight
Japan's real household food spending for Q2 2026 declined by 0.6% YoY. While this represents a narrowing from the -2.9% recorded in Q1, it remains in negative territory. Although the Shunto (spring wage offensive) drove up nominal wages, elevated agricultural prices and imported inflation caused by the depreciation of the yen continue to force citizens to strictly budget their daily food expenses. Looking ahead, the market is closely monitoring potential food consumption tax relief policies that may be introduced in the autumn, with hopes of rescuing the sluggish domestic demand.