Japan data: May inflation-adjusted wages down 1.2% y/y. May Household spending down 4% y/y

Wages data from Japan is not supportive of demand-induced inflation.

Cash earnings +2.5% y/y

• expected +0.7%, prior +0.8%

But in real terms, adjusted for inflation wages are down 1.2% y/y

Household spending data is also lacklustre, coming in at -4.0% y/y

• expected -2.4%, prior -4.4%

and for m/m -1.1%

• expected +0.5%, prior -1.3%

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Earlier re Japan:

• More on BOJ Dep Gov Uchida and a July 'tweak': "We will continue YCC" for the time being
• "Mr. Yen" Sakakibara says USD/JPY could soar beyond 160 before intervention from the BOJ
• Nomura looking for higher USD/JPY in near term, but eyes on the BOJ and intervention risk