Japan’s households have boosted spending by the most in 10 months despite inflation and falling real wages, signaling some resilience in the economy.

Outlays rose 2.7% in January from the previous month, led by increases in transportation, communication and entertainment, the internal affairs ministry reported Friday. Outlays declined a touch more than forecast compared to a year ago.

Friday’s data indicates there was a rebound in consumer confidence at the start of this year despite concerns about higher prices in fuel and daily necessities. The nationwide core inflation sped up beyond 4% in January, doubling the Bank of Japan’s 2% price goal. The solid consumption data could fuel market speculation that the central bank may consider moving toward policy normalization.