According to a February household survey in Japan which released by the Ministry of Internal Affairs and Communications on the 7th, the consumption expenditure of households with two or more people exceeded the same month last year for the first time in four months. While the growth in eating out and lodging pushed up the overall spending, the decline in spending on food stands out against the backdrop of high prices. The recovery in consumption has been spotty and has not reached the level before the COVID-19 pandemic.

Consumer spending in February increased by 1.6% year-on-year in real terms excluding the impact of price fluctuations, marking the first positive growth in four months. Six of the 10 items that make up consumer spending, such as education and entertainment, clothing and footwear, exceeded the same month last year.

February 2022 is in the midst of the “sixth wave” of coronavirus infections, and the government has applied some priority measures to prevent the spread of the virus. In February 2011, consumption related to going out increased as a reaction. Eating out increased by 38.0%, and accommodation and package travel expenses both doubled. Drinking bills increased about six times. The government’s tourism promotion policy “National Travel Assistance” is also a big boost.

Food prices fell by 0.4%, marking the fifth straight month of negative growth. Among them, seafood decreased by 13.4%, noodles by 14.6%, and oils and fats by 17.5%. The nationwide price increase rate in February, excluding fresh food, slowed down to 3.1% from the previous month, but the situation continues to weigh on consumption. There was also a decrease in eating at home due to an increase in eating out.

Overall consumer spending fell 4.4% compared to February 2019, before the coronavirus pandemic, hampered by mottled consumption. The negative range expanded from the 3.8% decrease in January 2011. Package travel expenses and alcohol consumption, which increased significantly compared to the previous year, were down 33.9% and 29.7%, respectively, compared to before the pandemic.