MNI BRIEF: Japan Dec Retail Sales Post 10th Straight Y/Y Rise

Japan's retail sales rose 3.8% y/y in December for the 10th straight rise following a 2.5% gain in November, showing that consumer spending remained solid as Bank of Japan officials expected, despite the rise in daily necessities prices, the Ministry of Economy, Trade and Industry showed on Tuesday.

Retail sales rose 1.1% m/m in December for the first rise in two months following a 1.3% decline in November. The data is consistent with the BOJ's latest assessment that private consumption has increased moderately, despite being affected by Covid-19, but bank officials are paying attention to how spending evolves amid continued high prices.

Many firms plan to raise retail prices in or after February, increasing downward pressure on spending amid low real incomes. The METI left its assessment, saying that retail sales are recovering.