AI Data Insight
Japan's latest average monthly real household spending for Q3 2026 fell by 3.6% year-on-year, widening from the previous decline of 3.3% and falling far short of market expectations of a 1.6% drop. High inflation and rising prices continue to erode purchasing power, forcing people to cut back on daily expenses. Despite weak consumption, the market remains highly focused on whether the Bank of Japan will consider raising interest rates in the short term due to inflationary pressures.