Japanese Household Spending Logs Biggest Rise Since Summer of 2022

Japan's household spending rose the most since the summer of 2022, a sign that consumers may be getting used to persistent inflation and could support an economy that is taking a hit from US tariffs.

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TOKYO - Japan's household spending rose the most since the summer of 2022, a sign that consumers may be getting used to persistent inflation and could support an economy that is taking a hit from US tariffs.

Outlays by households, adjusted for inflation, gained 4.7 percent from a year ago in May, largely due to more spending on cars, the Ministry of Internal Affairs and Communications reported on July 4. The result beat the median economist estimate of a 1.2 percent gain.

The jump in spending on cars in 2025 helped inflate the overall number, but was largely due to comparison with low volumes in 2024 resulting from a safety certification scandal, according to a ministry official.

Still, spending also grew for tourism both within and outside Japan, while people also increased outlays on eating out.