A weak yen is hurting Japanese households' sentiment and could erode their purchasing power, the government said in a report on Friday, underscoring its concern over the negative economic impact of the currency's fall.
When former Prime Minister Shinzo Abe's administration deployed its Abenomics stimulus policies in 2013, rising inflation expectations helped improve household sentiment, the government said in an annual white paper analyzing the economy.
But a renewed rise in inflation expectations since mid-2023 has soured households' mood, partly because the public reacted to media reports about rising food prices and the boost to import costs from a weak yen, it said.