March household spending down 2.3 yy, smaller drop than forecast
Household spending mm rises more than expected
JanMar spending falls 1.8 qq
Inflation clouds outlook while COVID risks easing analyst

TOKYO, May 10 Reuters Japan39;s household spending fell in March for the first time in three months, though the 2.3 drop was smaller than expected, as consumers remained cautious despite some easing of COVID19 curbs.

While lower coronavirus risks have boosted consumer activity since April, rising living costs may cramp Japan39;s consumptionled recovery for the rest of 2022, analysts say. Inflation is at a multiyearhigh in the world39;s thirdbiggest economy, fanned by war in Ukraine and the yen39;s skid to 20yearlows.

Government data on Tuesday confirmed the March spending drop versus the same month a year earlier. The decrease was narrower than Reuters39; median market estimate for a 2.8 drop, and followed 1.1 growth in February.

The first fall since December was also partly due to a tough comparison with March 2021, when spending surged 6.5, a government official told a media briefing. Some items like mobile devices, cars and takeaway foods saw robust demand, the official said.

Service spending on dining and travel agencies also slightly increased yearonyear, he said.

Meanwhile, spending on fresh foods and home appliances decreased from a year earlier, and consumption still remained below prepandemic levels in March, according to the data.

Household spending in the…