Japan's household spending in September fell 2.8 percent from a year earlier for the seventh consecutive monthly fall, as people cut back spending on food and other items amid rising prices while real wages continue to slide, government data showed Tuesday.
Households of two or more people spent an average of 282,969 yen ($1,890), the Ministry of Internal Affairs and Communications said. The rate of decline expanded from a 2.5 percent drop in August.
Separate data showed that real, inflation-adjusted wages in September dropped 2.4 percent from the previous year for the 18th straight monthly fall.
Nominal wages, the average total cash earnings per worker including base and overtime pay, rose 1.2 percent to 279,304 yen for the 21st consecutive month of climb, but they failed to keep up with rising prices, according to the Ministry of Health, Labor and Welfare.
Food expenditure, accounting for over a third of household spending, decreased 3.7 percent, falling for the 12th straight month, led by falls in vegetables, seaweed and meat.
Outlays for housing also declined 11.2 percent due to cutbacks on repairs and maintenance work and rents. Other categories also saw declines, with spending on clothing and shoes plunging 18.3 percent.
Among the few bright spots, expenditure for transportation and communications grew 12.4 percent, due to an increase in vehicle purchases, the internal affairs ministry said.
Household spending data is a key indicator of private consumption, which accounts for more than half of the country's gross domestic product.
As inflation pain continues for consumers in Japan, companies are under growing pressure to hike salaries from the government and Rengo, Japan's largest labor organization, ahead of the annual wage negotiations in spring.
The average pay hike at major member firms this year stood at 3.99 percent, the highest in 31 years, according to the Japan Business Federation.
Related coverage:
FOCUS: "Tax hike glasses" Kishida struggling to sell his government's story
Japan OKs over 17 tril. yen economic package to ease inflation shock
Japan views economy on moderate recovery path, warns of Mideast risks
