Tokyo, Oct 6 (IANS): Japan's household spending fell 2.5 per cent in August from a year earlier with consumption being squeezed by rising prices, government data showed on Friday.

Households of two or more people spent an average of 293,161 yen ($1,975), dropping for the sixth consecutive month but easing from the 5 per cent fall in July, according to the Ministry of Internal Affairs and Communications.

By category, food expenditure, accounting for around one-third of household spending, declined for the eleventh straight month by falling 2.5 per cent, amid rising prices for fish, meat, dairy products and eggs, reports Xinhua news agency.

Spending on education dropped 13.6 per cent in August, while healthcare expenditures fell by 11.2 per cent as demand for masks, thermometers, and other products further declined.

Meanwhile, consumption related to outings increased as this was the first summer vacation season since the legal status of Covid-19 was downgraded to category V.

Spending on dining out increased 15.2 per cent while that of overseas packaged tours increased 54-fold, the data showed.

Accounting for more than half of Japan's gross domestic product (GDP), household spending is a key gauge of private consumption in the country.

Separate data from the labor ministry showed on Friday that Japan's real wages in August declined for the 17th straight month by dropping 2.5 per cent, as price surges continued to outpace salaries.