Household spending in fiscal 2024, which ended in March, dropped 0.1% from the previous year in price-adjusted real terms, down for the second straight year, the internal affairs ministry said Friday.

The average monthly consumption expenditure of households consisting of two or more members stood at ¥304,178 ($2,094).

The decrease reflects sustained inflation, which is making consumers more budget-minded on food.

Spending on food fell 1.0% mainly because consumers tended to refrain from buying vegetables, seaweed, meat and fruits. Expenditures on rice were up 1.1%, reflecting rising prices.

Transport- and telecommunication-related expenses logged a 2.6% decrease as shipments of some vehicle models were suspended because of testing scandals in the automotive sector.

Expenditures were down 1.4% for furniture and household items, 1.9% for clothes and shoes, and 1.5% for culture and entertainment goods and services.

Due to inflation, the average total consumption spending marked the highest level in 22 years.

The Engel's coefficient, or the share of food in overall consumption spending, stood at 28.3%, the highest level since fiscal 1981.

In March alone, household consumption spending averaged ¥339,232, up 2.1% from a year earlier, marking the first increase in two months.

Expenditures on utility services rose due to an increase in spending on heating attributable to falls in temperatures.

Culture and entertainment spending grew on the back of increased replacement demand for personal computers.