Japan warns of weak yen’s impact on households in government white paper

The weak yen is undermining sentiment among Japanese households and could limit their purchasing power, the government said in a report released on Friday, underscoring concerns about the negative impact of the currency’s depreciation on the economy.

When former Prime Minister Shinzo Abe’s administration implemented the Abenomics stimulus in 2013, rising inflation expectations helped boost household sentiment, the government said in an annual white paper examining the economy.

However, a renewed rise in inflation expectations from mid-2023 has dampened household sentiment, partly due to public reaction to media reports of rising food prices and a rise in import costs due to the weak yen, the statement said.