Retail sales in Japan increase for ninth month thanks to tourism

By: News Team

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Retail sales in Japan increase for ninth month thanks to tourism

Japanese retail sales rose for the ninth straight month in November, data showed on Tuesday, as the removal of COVID-19 border controls and government subsidies on domestic travel helped consumer demand.

However, sales fell from October, as rising prices of basic necessities weighed on Japanese households, while the core consumer inflation rate hit a new 40-year high, indicating that price growth was spreading.

The recovery in private consumption, which accounts for more than half of Japan’s economy, is key to boosting growth in the economy, which unexpectedly contracted in the third quarter.

Retail sales grew 2.6% year-over-year, but below the average forecast of 3.7%. The annual growth rate of sales, a barometer of private consumption, slowed down, as it was 4.4% in October and 4.8% in September.

On a seasonally adjusted basis, retail sales fell 1.1% in November from the previous month, for the first time in five months.

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