Japan's household spending in October fell 2.5 percent from a year earlier, down for the eighth consecutive month, as the unusually warm weather drove up prices of some vegetables and prompted people to refrain from buying, government data showed Friday.
Households of two or more people spent an average of 301,974 yen ($2,097), the Ministry of Internal Affairs and Communications said. The rate of decline shrank slightly from a 2.8 percent drop in September.
The weak spending came as separate data showed inflation-adjusted real wages in October dropped 2.3 percent from the previous year for the 19th straight monthly fall, as wage growth failed to keep up with rising prices.
Nominal wages rose 1.5 percent to 279,172 yen for the 22nd consecutive month of growth, according to the Ministry of Health, Labor and Welfare.
The hotter-than-usual weather for the month led to lean harvests of tomatoes and green onions, driving up their prices, and prompted consumers to cut back on spending. The weather also slowed sales of other cold weather items, the internal affairs ministry said.
By category, food expenditure, accounting for a third of household spending, fell 4.4 percent as people spent less on vegetables, seaweed and prepared food. Spending on preprepared lunch boxes such as sushi also declined.
Outlays on furniture and household products dropped 12.9 percent, led by durable items such as stoves and heaters amid the high temperatures. Spending on clothing and shoes also fell due to sluggish demand for winter fashion.
"Prices are rising in general, but we think these spending patterns are largely attributable to the hot weather," an official at the ministry said.
In contrast, expenditure on transportation and communications grew 5.3 percent, as an easing chip shortage increased vehicle production and led to more purchases.
Household spending data is a key indicator of private consumption which accounts for more than half of the country's gross domestic product.
