#Consumption

Japan's April CPI Drops to 1.4% Below Expectations, Policy Subsidies Suppress Inflation in the Short Term

Japan's CPI annual growth rate for April 2026 (Q2 2026) fell to 1.4%, continuing its decline from the previous 1.5% (Q1 2026) and coming in below market expectations. The sharper-than-expected cooling of inflation data mainly benefited from the government's cost-of-living subsidies and a drop in education expenses. However, against the backdrop of a weak yen and high oil prices, the market still expects the Bank of Japan (BOJ) to maintain its pace of monetary normalization, with upside risks to inflation going forward.

China's Q2 Consumption Momentum Freezes! April Total Retail Sales YoY Growth Plummets to 0.2%, Hitting an Over Three-Year Low

In the early part of Q2 2026 (April), the year-on-year growth rate of China's total retail sales of consumer goods dropped sharply to 0.2% from the previous 1.7%, falling far below the market expectation of 2.0% and marking the worst performance since late 2022. The heavy slump in large-ticket consumption related to automobiles and real estate was the primary drag, highlighting the extreme vulnerability of the domestic demand recovery momentum.

US Q2 CPI YoY Surges 3.8% Above Expectations, Geopolitical Conflicts Fuel Energy Inflation Gloom

The US CPI YoY growth rate for Q2 (April) 2026 jumped to 3.8%, a significant rebound from the previous 3.3% and higher than market expectations. Driven by soaring energy prices triggered by geopolitical tensions, both gasoline and core inflation have risen simultaneously. The persistently high stickiness of inflation may force the Federal Reserve to delay interest rate cuts, adding to market concerns about an economic downturn.

Japan's Q1 Household Spending Decline Widens to 2.9%, Fourth Consecutive Drop Highlights Weak Consumption Recovery

In the first quarter of 2026 (March), Japan's average real household spending fell by 2.9% year-on-year, deteriorating further from the previous value of -1.8% and falling significantly below the market expectation of -1.3%. Affected by high inflation and the depreciation of the yen, core expenditures such as food and utilities contracted significantly. Even with substantial corporate wage hikes, it remains difficult to reverse the weak real consumption momentum in the short term.

China's Q2 2026 CPI YoY Rate Rises to 1.2%, Beating Expectations, Energy and Travel Demand Drive Inflation Recovery

China's latest released 2026-04-01 (Q2 2026) CPI YoY rate reached 1.2%, rebounding slightly from the previous value of 1.0% in Q1 2026, and surpassing the market consensus of 0.8%. This inflation growth was mainly driven by the rise in international crude oil prices and holiday travel demand, offsetting the drag from falling food prices. Looking ahead, analysts believe that external energy prices will continue to support price levels, but the strength of domestic demand recovery remains the key to whether subsequent inflation can steadily rise.

US Q2 Consumer Confidence Index Climbs to 92.8 as Job Market Recovery Offsets Inflation Concerns

In Q2 (April) 2026, the US Consumer Confidence Index edged up to 92.8, outperforming the previous Q1 value of 91.8. Although rising oil prices and geopolitical risks have elevated inflation concerns, the resilience of the job market and improving income expectations successfully supported overall consumer sentiment. However, the Expectations Index remains persistently below the recession warning line, indicating that future economic downside risks still exist.