Japan's Engel's Coefficient Hits 28.6 Percent High Since 1981

Japan's Engel's coefficient has surged to 28.6 percent, the highest level recorded since 1981. This significant increase has been driven by a notable rise in food prices, which has begun to exert pressure on consumer spending patterns across the nation.

As a key indicator of consumer spending, the Engel's coefficient reflects the proportion of household income spent on food. The rising percentage suggests that households are dedicating a larger share of their budgets to essential food purchases, thereby limiting discretionary spending on other goods and services. This trend is indicative of broader economic pressures that could influence the market dynamics in Japan.