Household wealth has risen to a record level as Prime Minister Shinzo Abe "reflates" the economy, giving a cushion to consumers facing higher costs of living.

Household assets increased to ¥1.645 quadrillion at the end of June, up 2.7 percent from a year earlier, according to a quarterly Bank of Japan report released Thursday. Holdings in investment trusts climbed 15 percent to an all-time high of ¥82 trillion.

Rising wealth from a buoyant stock market and a pickup in land prices may cushion households as the April 1 hike in the consumption tax fuels inflation that was 1.4 times wage growth in July.