05.07.24
Japan household spending declined in May by 1.8% over year. After few years of steady easing Japan consumption showed signs of recovery starting in February of this year, however today’s reading does not confirm this pickup.
Data is negative news for BOJ which is now considering possible rate hikes in the near future, maybe as soon as on July meeting.
Household spending is biggest part of the economy and its positive dynamics is prerequisite for the healthy economy as a whole.
The major concern for police-makers for now is that current inflation rate may quickly transform to deflation in the case the economy fails to demonstrate steady growth.
In the light of this today’s figures look rather negative for the prospect of rate hikes.