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Japan data – May household spending -1.8% y/y (expected +0.1%)

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.

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