Japan Households Face Summer Price Hikes as GDP Grows 0.3% and Domestic Demand Weakens
Updated
Updated · The Japan Times · Aug 18
Japan Households Face Summer Price Hikes as GDP Grows 0.3% and Domestic Demand Weakens
3 articles · Updated · The Japan Times · Aug 18
Summary
Japanese households are set to face broader price hikes in and after summer as companies pass on higher costs driven by elevated crude oil prices.
Those increases threaten to further squeeze consumers and weigh on growth, with rising energy-linked costs feeding into goods and services across the economy.
Japan's GDP rose 0.3% in April-June from the previous quarter, or 1.1% annualized, but the headline growth masked weak domestic demand.
Private consumption and corporate capital investment both declined, suggesting higher living costs are hitting spending even as the economy continues to expand modestly.