Households of two or more people spent an average of 279,868 yen (about 1,850 U.S. dollars), narrowing from the 6.3-percent fall in January, according to the Ministry of Internal Affairs and Communications.
By category, food expenditure, accounting for around one-third of household spending, gained 2 percent year on year, the first increase in 17 months, amid rising prices of dining out and beverages during the reported period.
Outlays for housing went up for the first time in four months by 9.5 percent due to rising expenses on repairs and maintenance work and rents.
Accounting for more than half of Japan's gross domestic product (GDP), household spending is a key gauge of private consumption in the country.
Companies are taking different approaches to navigate the challenges posed by inflation, observed Kazuyoshi Komiya, a local management consultant. "With real wages stagnant, the efficacy of pricing strategies significantly impacts corporate performance, and all eyes are now on the upcoming spring wage increases to gauge how much real income will grow," he noted.
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