Home > Statistics > Handbook > Chapter 13 Family Budgets and Prices
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In 2010, there were approximately 52 million households in Japan, of which about 70 percent are two-or-more-person households and about 30 percent are one-person households. Family budgets vary significantly depending on the employment situation and ages of their members. In this section, family budgets in various types of households are described on the basis of the 2011 results of the Family Income and Expenditure Survey.
(A) Two-or-more-person Households
The 2011 average monthly consumption expenditures per two-or-more-person households (the average number of household members being 3.08 and the average age of the household head being 56.8 years) was 282,955 yen. Compared to the previous year, it decreased by 2.5 percent in nominal terms and decreased by 2.2 percent in real terms. The share of food expenses to the whole consumption expenditures (Engel's coefficient) was 23.6 percent.
(a) Workers' Households
A workers' household means a households of which the head is employed by a company, public office, school, factory, store, etc. The average income of workers' households (the average number of household members being 3.42 and the average age of the household head being 47.3 years) was 510,117 yen in 2011, of which over 80 percent came from the household head's income.
Disposable income, calculated as income minus non-consumption expenditures such as taxes and social insurance contributions, was 420,500 yen. Of this disposable income, 308,826 yen was used for living expenses (consumption expenditures), such as food and housing expenses, while the remainder (surplus), totaling 111,675 yen, was applied to savings, life insurance premiums and repaying debt such as housing loans.
A look at consumption expenditures by category showed that some categories, including spending on "housing" and "education," increased from the previous year in real terms, while "transportation and communication," "culture and recreation" and other spending decreased in real terms.
Family budgets differ among households according to their stages in life. Observed by age group of the household head, the 2011 average monthly disposable income of workers' households was the highest in households in the 50s group (468,331 yen), followed by those in the 40s group (463,953 yen) and the 30s group (389,732 yen).
The 2011 average propensity to consume (the ratio of consumption expenditures to disposable income) was the lowest in households in the 30s group (68.5 percent). The figure was 69.3 percent in those in the 40s group, 73.7 percent in the 50s group, and 93.5 percent in the 60s group. The percentage tends to be higher as the age goes up, except for the under-30 group (71.0 percent) and the 70-and-over group (86.3 percent). Meanwhile, a net increase in financial assets (an amount added to savings) was the highest in households in the 40s group, followed by those in the 50s group.
(b) Non-working Elderly Households
According to an analysis of the average monthly income and expenditures of non-working elderly households (two-or-more-person households where the age of the household head is 60 and over), the average income was 218,292 yen in 2011. Social security benefits amounted to 186,795 yen, thus accounting for 85.6 percent of income.
Disposable income averaged 187,728 yen, while consumption expenditures averaged 240,602 yen. The average propensity to consume in non-working elderly households was 128.2 percent, which means consumption expenditures exceeded disposable income. The deficit of disposable income to consumption expenditures (52,873 yen) decreased from that of the previous year (58,485 yen). This deficit was financed by the proceeds from private and/or corporate pension insurance, and by withdrawing financial assets.
(B) One-person Households
The average monthly consumption expenditures of one-person households in 2011 was 160,902 yen, down 0.7 percent in nominal terms and down 0.4 percent in real terms from the previous year. Compared on an age-group basis to the previous year, the average monthly consumption expenditures were down 3.0 percent for the 35-59 age group and down 2.1 percent for the 60-and-over, while there was a 8.7-percent increase in the under 35-year-old group. Spending on categories such as "fuel, light and water charges," "furniture and household utensils" and "medical care" tended to be larger in older age groups. Meanwhile, older age groups were found to spend increasingly less on categories such as "transportation and communication."
Two-or-more-person households in 2011 showed that the average amount of savings per workers' household was 12.33 million yen, resulting in its ratio to average yearly income (6.89 million yen) amounting to 179.0 percent. On the other hand, the average amount of debts per household was 6.47 million yen, which was 93.9 percent relative to yearly income. The portion for "housing and land" accounted for 6.01 million yen of the debts (6.47 million yen). A total of 38.3 percent of workers' households held "debts for housing and land. "
By age group of the head of the household, the average amount of savings was found to be the highest in the 70-and-over group, while debts were the highest in the 40s group.
By yearly income group, an almost positive correlation was observed between yearly income and savings/debts: the higher the yearly income, the higher the amount of savings as well as debts.
A general overview of Japan's price movements in recent years showed that corporate goods prices were going up since 2004, reflecting the recovering economy and rising prices in raw material imports. Meanwhile, consumer prices, which had been deflationary for the past decade, changed their pattern in 2006 to later take on an upward trend in the start of 2008. However, since September 2008, corporate goods prices and consumer prices have both declined. This was due to falling prices of petroleum products, etc. which resulted from a global economic slowdown triggered by the failure of an American securities investment bank in September 2008. From a long-term viewpoint, price movements are different between consumer prices and domestic corporate goods prices.
The overall index of consumer prices (with base year 2010 = 100) was 99.7 in 2011, down 0.3 percent from the previous year. This was owing to, among other factors, a decrease in the consumption of TVs resulting from declined demands in conjunction with the shift to Digital Terrestrial Television Broadcasting.
According to the regional difference index of prices, which compares the difference in consumer price levels by prefecture, Tokyo-to had the highest score in 2007, with a figure of 108.5 against the national average set at 100. Following Tokyo-to were Kanagawa-ken (104.8) and Kyoto-fu (102.8). On the other hand, Okinawa-ken registered the lowest score at 91.9. Comparing Tokyo-to and Okinawa-ken, price index of Tokyo-to was 18.1 percent higher than that of Okinawa-ken.
The corporate goods price index measures the price developments of goods traded between companies. It is comprised of the domestic corporate goods price index (index of transaction prices between companies for domestic products targeted at the domestic market), the export price index, and the import price index.
In 2011, the domestic corporate goods price index (2005 as the base year = 100) was 105.0, up 2.0 percent from the previous year, recording an increase for the first in three years.
In 2011, the export price index increased for the second consecutive year to 104.1 on a contract currency basis (up 3.8 percent from the previous year); measured in yen, the index decreased for the fourth consecutive year to 84.3 (down 2.4 percent). Meanwhile, the import price index rose to 151.4 on a contract currency basis (up 19.0 percent from the previous year) and to 116.9 on a yen basis (up 10.0 percent), thus turning up in both contractual currency and yen terms for the second consecutive year.
The corporate services price index measures price movements of services traded between companies. In 2011, the corporate services price index (2005 as the base year = 100) was 96.2, down 0.7 percent from the previous year.
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