Japan's high inflation and the weak yen have discouraged spending by individuals and households during the year-end and New Year's holidays, according to a private sector survey.
The average budget for those with holiday plans in the country stood at ¥45,235 ($320), up 27.8% from the previous year, but more than half of the respondents said they would cut seasonal spending, including on special dishes and Christmas presents, marketing firm Intage Inc. said on Dec. 25.
Among the respondents, 56.2% said they had no travel plans.
With the easing of COVID-19 measures, 18.5% said they would visit their parents' homes, while only 0.7% planned to travel abroad, amid the weak yen.
Following recent price hikes, 52.5% said they would cut their seasonal spending, with 51.3% saying inflation would weigh on their purchases of festive food items, including orders for osechi New Year dishes, the survey showed.
"The movement of people will increase but their savings mindset remains strong," an official at Intage said.
The survey covering 5,000 people between the ages of 15 and 79 was conducted between Nov. 24 and 27.
In a separate survey by Intage released on Dec. 27, the total amount of otoshidama, or cash given on New Years for children, increased 6% from 2022 to 25,099 yen.
Although about 90% of the respondents who offer otoshidama give them out in cash, about a quarter of those who plan to receive them want it via cashless payment, it said.