Japan Household Budget To Rise By $200 Per Person In 2024

Japanese households are expected to see a rise in budget burdens by 29,000 yen (about $206) per person in 2024, according to an estimate by Dai-ichi Life Research Institute Chief Economist Toshihiro Nagahama, as reported by Yuko Shimada for Mainichi Shimbun.

If consumer prices continue to rise as projected, inflation is expected to slow from 3.1% in 2023 to 2.4% in 2024.

The projected increase is lower than in 2023 when estimated outlays rose by 37,000 yen (about $262) per person, with expectations that energy cost increases and the historic depreciation of the yen will slow in 2024.

However, real wages have declined for 19 consecutive months, keeping pressure on households high.

On a positive note, the government plans to implement a flat tax cut of 40,000 yen (roughly $280) per person starting in June, which is anticipated to offset the living cost increase for the year.

Nagahama based his estimates on the December ESP Forecast, a compilation of forecasts by 38 private-sector economists produced monthly by the Japan Center for Economic Research.

If consumer prices continue to rise as projected, inflation is expected to slow from 3.1% in 2023 to 2.4% in 2024, from which Nagahama estimated the per capita impact on households.

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