Household Spending for May 2024 -1.8% y/y
expected 0.1%, prior 0.5%
For the m/m -0.3%
expected +0.5%, prior -1.2%
Cited amongst reason for the dramatic drop:
higher prices continued to squeeze consumers’ purchasing power
Well, that’s a terrible result! Japanese policymakers are trying to achieve sustained economic growth underpinned by solid wages and durable inflation. This is seen as a prerequisite to normalising monetary policy. This sort of result is not going to support Bank of Japan interest rate hikes. At the margin a yen negative.
This article was written by Eamonn Sheridan at www.forexlive.com.
