Japan data - April household spending -0.1% y/y (expected +1.4%, prior +2.1%)

Japan data - April household spending, a substantial miss both y/y and m/m:

-0.1% y/y

• expected +1.4%, prior +2.1%

-1.8% m/m

• expected -0.8%, prior +0.4%

Household spending is not benefitting from real wages continuing to fall in Japan. Pay is failing to keep up with inflation, which has been marked by soaring food prices:

• Japan April inflation adjusted wages -1.8% y/y, down for a fourth month