Japan's Household Spending Slumps Most Since Pandemic

• Japan's household spending declined 6.8% in September from a year earlier, the steepest drop since the pandemic.
• The decrease was led by reduced spending in transport, education, and entertainment sectors.
• This decline highlights ongoing weakness in consumer spending despite the Bank of Japan's growing confidence in entrenched inflation.
• The Bank of Japan is considering further interest-rate increases due to the persistent inflation.
• This marks the most significant drop in household spending since the pandemic began.