TOKYO, Nov 8 Reuters Japanese household spending fell in September for the second straight month, government data showed on Friday, as higher prices choked consumers39; appetite in a discouraging sign for the central bank39;s plans to hike rates further.
Consumer spending fell 1.1 from the year earlier, against the median market forecast for a 2.1 decline. On a seasonally adjusted, monthonmonth basis, it fell 1.3, versus an estimated 0.7 drop.
There are onetime bumps in consumption but it doesn39;t last long, said Takeshi Minami, chief economist at Norinchukin Research Institute. The background to this is the high cost of living, and the deeprooted desire to save money.
Households have likely continued to cut back spending on food, opting for cheaper alternatives like chicken instead of beef, and saving more of their income, an internal affairs ministry official said.
The JulySeptember average of consumer spending dropped 1.0 compared with the same period a year ago, the official said.
Consumption and wage trends are among key factors the Bank of Japan BOJ is watching to gauge the strength of the world39;s fourthlargest economy and decide how soon to raise interest rates.
September39;s pay data released on Thursday showed inflationadjusted wages falling for the second straight month despite nominal salary making gains and consumer inflation cooling.
The yen39;s renewed softening with the election of Donald Trump as the next U.S. president could also hit…