Overview

• Household spending in Japan decreased by 1.8% in May compared to the previous year.
• The decline missed the forecasted 0.3% increase, affecting food, utilities, and durable goods.
• The Bank of Japan faces challenges in deciding on a potential interest rate hike.
• Rising inflation and a weak yen continue to pressure consumer sentiment.
• Government measures, including tax rebates and utility subsidies, may offer limited relief.