Oil price cap may increase Russia’s budget deficit by 2023, according to F According to data released on Tuesday, Japanese retail sales increased for a ninth consecutive month in November as consumer demand was boosted by the removal of COVID-19 border controls and a government subsidy for domestic travel.

Sales, however, decreased from October to November as a result of Japanese households being burdened by price hikes for basic necessities and the nation’s core consumer inflation rate reaching a new 40-year high, which indicated that price increases were becoming more widespread.

Private consumption, which accounts for more than half of Japan’s GDP, must pick up for the economy to grow after the third quarter’s unexpected contraction.

Retail sales increased 2.6% over the prior year, falling short of the median estimate of 3.7%. A measure of private consumption, the rate of annual sales growth slowed from 4.4% in October and 4.8% in September.

Retail sales decreased for the first time in five months in November when compared to the prior month on a seasonally adjusted basis, falling 1.1%.

Data released last week showed a significant increase in visitor numbers to Japan in November, the first full month following the country’s removal of COVID-19 curbs that had effectively stopped travel for more than two years.

People were also encouraged to spend money on travel and travel-related items by a government campaign that began in mid-October to subsidize domestic travel in an effort to support the pandemic-affected tourism industry.

Retail sales increased 2.6% over the prior year, falling short of the median estimate of 3.7%. A measure of private consumption, the rate of annual sales growth slowed from 4.4% in October and 4.8% in September.

Retail sales decreased for the first time in five months in November when compared to the prior month on a seasonally adjusted basis, falling 1.1%.

Data released last week showed a significant increase in visitor numbers to Japan in November, the first full month following the country’s removal of COVID-19 curbs that had effectively stopped travel for more than two years.

People were also encouraged to spend money on travel and travel-related items by a government campaign that began in mid-October to subsidize domestic travel in an effort to support the pandemic-affected tourism industry.

Because of the threat of a global recession, China’s slowing economy, a weak yen, and higher import costs, Japan’s economy unexpectedly contracted in the third quarter.

The government increased its growth prediction for the upcoming fiscal year last week from a 1.1% expansion in the prior forecast from July to 1.5%.

(Adapted from CNBC.com)

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