Japan's consumer sentiment hits 32.8 in May; Inflation fears persist

Japan’s Consumer Confidence Index climbed to 32.8 in May 2025, up 1.6 points from April, according to the latest government survey by the Cabinet Office, Government of Japan.

The survey, conducted across 8,400 households, showed improvements across all categories. The index for overall livelihood increased by 2.9 points to 30.2, the income growth index edged up by 0.8 points to 38.3 and confidence in employment rose by 1.6 points to 37.3. The willingness to buy durable goods also improved, rising by 1.2 points to 25.4, though it remains the weakest among the sub-indices.

Meanwhile, inflation expectations remain strong. A record 93.6 per cent of respondents anticipate prices will rise over the next year, up 0.4 percentage points from April. Only 2.2 per cent expect prices to fall. The survey had a 72.4 per cent response rate.

ALCHEMPro News Desk (HU)