AI Data Insight
Japan's latest average monthly household spending for Q2 2026 was 328,969 yen, down from 334,701 yen in the previous Q1 2026 period, but the real year-on-year decline narrowed to 0.5%, outperforming the market expectation of a 1.5% contraction. Although inflation continues to weigh on essential consumption such as food and clothing, four consecutive months of real wage growth are gradually providing support for household budgets. Looking ahead, the Bank of Japan will closely monitor the virtuous cycle between wages and prices, with consumption momentum expected to gradually recover in the second half of the year.