Japan’s domestic spending exceeds expectations, which increases the case for more boxwoods

Japan’s domestic spending in December increased 2.7% year after year in real terms, massively exceeding the expectations of economists surveyed by Reuters and marking its first increase since July 2024.

The figure sharply exceeded reuter expectations of a 0.2%increase, which increases the case of another increase in the interest rate of the Bank of Japan.

According to a Friday Japan Statistics Office ReportThe average household spending in Japan stood at 352,633 yen ($ 2,332) in December, 7% more in nominal terms of the previous year.

The average monthly income per household was 1,179,259 yen, 7.2% more in nominal terms and 2.9% more in real terms year after year.

The data come after BOJ raised its 0.5% reference policy rateIt is higher since 2008. The BOM has long stated that it would increase the rates if you see a “virtuous cycle” with higher prices and growing salaries.

On Thursday, the member of the Boj Board, Naoki Tamura, said it was “necessary” for the Boj to increase the short -term interest rates “At least about 1%”for the second half of fiscal year 2025. Japan 2025 fiscal year ends on March 31, 2026.

The next discussions of spring salary in Japan, also known as the “Shado” negotiations, will focus for investors who observe the movements of the Boj’s interest rate. Negotiations will begin some time in February, and larger companies will respond in mid -March.

The head of the Japanese Trade Union Confederation, or Rengo, said in January that annual salary increases for Japanese workers in 2025 should be higher than the growth of 5.1% last year because real wages continue to fall, Reuters reported.

Country data Ministry of Labor He revealed that real wages have fallen during the last three years, with real wages that fall 0.2% year after year in 2024.

According to the reports, the president of Rengo, Tomoko Yoshino, said that the labor organization is formally looking for salary increases of at least 5% in the “Shunto” salary negotiations of this year.

To ensure that the income of the workers of the smallest companies does not stay behind the largest, Yoshino said there should be an increase of at least 6% for the first.

– Lee Ying Shan from CNBC contributed to this report.

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