Japan's May Household Spending Decline Complicates Economic Outlook

Unexpected drop in consumer spending raises questions about the Bank of Japan's monetary policy direction.

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.