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: 17.07.2026 Expectation: 500 pips
Buying Brent crude with $80 target
Yesterday at 11:27 AM 40
Period: 31.08.2026 Expectation: 600 pips
Invest in AUDCAD up to 0.9900
Yesterday at 11:05 AM 21
Period: 17.07.2026 Expectation: 745 pips
USDCAD keeps its downside potential on fading upward move
Yesterday at 11:02 AM 18
Period: 10.08.2026 Expectation: 4000 pips
Selling GBPUSD on weak UK economy
Yesterday at 09:27 AM 12
Period: 18.07.2026 Expectation: 725 pips
AUDCAD sets sights higher as new uptrend takes shape
Yesterday at 06:55 AM 18
Period: 09.08.2026 Expectation: 250 pips
Selling ETHUSD down to $1,500
09 July 2026 49
Go to forecasts