AI Data Insight
Japan's Q2 2026 real household spending fell 3.3% year-on-year, deteriorating further from the previous period's 0.4% decline and falling far short of market expectations for a 1.0% increase. Although real wages maintained growth, high inflation continues to erode purchasing power, leading to significant contractions in spending on food and clothing. Going forward, it is necessary to closely monitor the impact of the Bank of Japan's tightening policy and official price subsidies on domestic consumption.