Japanese household spending significantly exceeds expectations, further boosting cases for BOJ hiking
Customers will pick up snacks at a supermarket in Tokyo, Japan on Tuesday, July 27th, 2021.
Hayashi Noriko | Bloomberg | Getty Images
Japan’s household spending in December has effectively risen 2.7% year-on-year, marking its first rise since July 2024, marking its first increase since July 2024. .
The figure sharply beat Reuters’ expectations of an increase of 0.2%, boosting another interest rate hike lawsuit from the Bank of Japan.
According to Friday Report from the Japan Statistics BureauJapan’s average household expenditure was 352,633 yen ($2,332) in December, up just 7% from the previous year.
The average household income for the same month was 1,179,259 yen, a nominal increase of 7.2% and a real condition increased by 2.9%.
Nikkei 225 After release, I slid 0.44%, circle Strengthened from 0.18% to 151.19.
The data will come later Boj has increased its benchmark policy rate to 0.5%the best since 2008. BOJ has long said that if they see a “noble cycle” of higher prices and increased wages, it will raise prices.
LSEG estimates that there is a 21.2% chance of hiking at the May meeting after the release of spending data showed that there is a 95.7% chance of a BOJ holding at its next meeting on March 19th. It’s there.
On Thursday, BOJ board member Naoki Tamura said it was “necessary” for BOJ to raise short-term interest rates.By the end of fiscal year 2025, at least 1%. Japan’s 2025 fiscal year ends on March 31, 2026.
Japan’s upcoming spring wage debate, also known as “shunt” negotiations, will focus on investors watching interest rate movements at BOJ. Negotiations will begin for a while in February. and Large companies We will respond in mid-March.
In January, Lengo, head of the Japan Labor Union, said that the increase in annual salary for Japanese workers in 2025 must be higher than the 5.1% growth last year due to lower real wages. I stated. Reuters reported.
Data from the country Ministry of Labor Real wages have fallen over the past three years, and it has been revealed that real wages in 2024 have fallen 0.2% year-on-year.
Rengo President Yoshino reportedly said the labor organization is officially hoping to raise wages by at least 5% in this year’s “Shunto” wage negotiations.
To ensure that small business workers’ incomes fall behind the larger business’ incomes, Yoshino said the former should have at least 6% hikes.
– CNBC’s Lee Ying Shan contributed to this report.