Japan's Household Spending Stagnates in July

Minimal growth in consumer spending raises concerns over economic recovery and complicates BOJ's rate hike plans.

Household spending in Japan increased by just 0.1% year-on-year in July, missing the forecasted 1.2% growth.
On a month-to-month basis, spending fell by 1.7% from June, indicating cautious consumer behavior amid rising prices.
Higher expenditures on housing and education were offset by declines in transportation and food spending.
Inflation-adjusted wages grew for the second consecutive month, but future wage gains remain uncertain without seasonal bonuses.
The Bank of Japan faces challenges in deciding further interest rate hikes due to weak consumer spending and mixed economic signals.