Japan's actual household consumption has declined year-on-year for three consecutive months.

Japan’s Ministry of Internal Affairs and Communications announced on the 7th the results of a survey showing that inflation’s persistent high level has been squeezing people’s real disposable income, and in February this year, Japan’s real household consumption expenditure fell year over year for the third consecutive month.

Data show that in February, Japan’s average monthly spending for households with two or more people was 289,400 yen (about 159 yen per US dollar). Compared with the same period last year, it decreased by 0.4%. After adjusting for price factors, real year-over-year spending fell by 1.8%. Real household consumption has declined year over year for 3 straight months since December last year.

In terms of actual spending, among the 10 broad categories of consumption, spending on food—the largest expenditure item—fell by 0.5% year over year; transportation and communications spending declined by 5.9%; education spending fell by 28.2%; and spending on other miscellaneous items also fell. At the same time, due to rising home prices and rents as well as higher housing repair costs, spending on housing increased by 12.1% year over year. In addition, spending in categories such as furniture and home goods, clothing, entertainment, and medical care and health also increased year over year.

Toshihiro Nagahama, chief economist at DAI-ICHI Life Research Institute in Japan, said that based on the report, people’s awareness of cutting back has expanded from the food sector to the education sector, and “the actual decline in personal consumption may be larger than the figures released.”