Household spending in Japan fell 2.9% yoy in March 2026, deepening from a 1.8% drop in the prior month and missing market estimates of a 1.3% decline. This marked the fourth straight decrease in personal consumption, amid persistent inflationary pressure. Spending weakened for food (-2.9% vs -0.5% in February), utilities (-3.2% vs a flat reading), clothing (-2.6% vs 2.3%), and transportation and communication (-16.8% vs -5.9%). Meanwhile, growth in culture and recreation spending slowed sharply (4.6% vs 10.8%). In contrast, expenditures rose further for housing (15.3% vs 12.1%) and furniture and household items (5.5% vs 1.9%), while healthcare spending accelerated markedly (20.1% vs 7.7%) and education outlays rebounded (2.1% vs -28.2%). On a seasonally adjusted monthly basis, spending was down 1.3%, reversing a 1.5% growth in February and underperforming forecasts of a 0.6% rise.