Japan household spending fell for a ninth consecutive month in August, underscoring consumer caution despite rising wages. Inflation-adjusted household spending slid 3.1% YoY in August; seasonally adjusted spending rose 0.1% MoM. Real wages have increased every month this year but have yet to lift consumption. The divergence complicates BOJ communication: Governor UEDA has flagged upside inflation risks and many market participants expect another rate hike before year-end. Friday’s data show inf

Japan household spending fell for a ninth consecutive month in August, underscoring consumer caution despite rising wages. Inflation-adjusted household spending slid 3.1% YoY in August; seasonally adjusted spending rose 0.1% MoM. Real wages have increased every month this year but have yet to lift consumption. The divergence complicates BOJ communication: Governor UEDA has flagged upside inflation risks and many market participants expect another rate hike before year-end. Friday’s data show inflation and domestic demand are not moving in tandem, and a too-fast or too-large tightening could weigh on the economy.