Japanese Household Spending Surges 2.9% in November, Defies Forecasts
Japanese household spending grew 2.9% year-on-year in November 2025, defying expectations of a decline. This unexpected surge supports the Bank of Japan's recent decision to raise its policy rate to a 30-year high.
Insights:
Japanese household spending rose by an unexpected 2.9% year-on-year in November 2025, according to data released by the Japanese Internal Affairs Ministry on January 9, 2026. This significant increase defied the median market forecast of a 0.9% decline, marking a notable recovery in private consumption. The Bank of Japan (BOJ) has cited this stronger-than-expected spending as a key factor in its decision to raise its policy rate to 0.75% in December 2025, the highest level in 30 years.
