One of the probable reasons the consumption tax increase has had such a negative effect on spending is that a lot of businesses took the opportunity to jack up prices way more than an extra 3%. Things that cost 525 yen suddenly cost 600 yen and so on. When I see that sort of price gouging, my instinct is to think again about whether I really need to buy that thing or not. This is exacerbated by the lack of a pay increase in our household for five years. It's a recipe for economic contraction.
5 ( +5 / -0 )