21 March 2025 | Other

Japanese consumers' cash holdings shrink as inflation rises

Japanese consumers' cash holdings shrink as inflation rises

Japanese households' cash holdings shrank at a record pace last quarter amid rising costs of living. The amount of cash held by the country's citizens fell to 105.3 trillion yen (about $704.9 billion). That was 3.4% lower year-on-year.

The drop was the largest since 1998. As Bloomberg pointed out, such dynamics indicate the shift of the Japanese population to cashless payments and the growth of nominal consumer spending in the face of inflation.

At the same time, there was an increase in household assets in investment trusts. The growth of this indicator reached a record level, as more private investors preferred this type of asset. According to the agency, the number of Japanese government bond holders also grew at the highest rate since 2007.

Japan's inflation is rising faster than expected and remains above the central bank's 2% target, official data showed last Friday. Consumer spending, not adjusted to price increases, hit a record high.

Period: 18.02.2026 Expectation: 1030 pips
EURUSD bounces back from yesterday's dip after soft US print
Yesterday at 10:33 AM 29
Lyra_Moonwell1
Lyra_Moonwell1

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
Period: 25.02.2026 Expectation: 1700 pips
Accumulate NVIDIA stock on correction ahead of February 25 report
Yesterday at 07:02 AM 25
Period: 17.02.2026 Expectation: 1500 pips
Buying AUDUSD on correction after hitting three-year high
10 February 2026 33
Lyra_Moonwell1
Lyra_Moonwell1

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
Period: 17.02.2026 Expectation: 2600 pips
High operational risks justify Tesla share selloff
10 February 2026 35
Gold buy
Period: 30.04.2026 Expectation: 20000 pips
Investing in gold up to $5,230
10 February 2026 47
Period: 31.03.2026 Expectation: 350 pips
Selling EURUSD with 1.18700 in sight
10 February 2026 23
Go to forecasts