Japan posts robust household spending, jobs data — but inflation stays stubbornly low
Tokyo — Japanese household spending hit its highest for two years in June as unemployment fell and job availability reached a 43-year peak, official figures showed, but inflation gave little sign of getting much closer to the Bank of Japan’s price target. Indicating that the tightening labour market has yet to fuel inflation, core consumer price gains held steady in June, government data showed on Friday, undermining the Bank of Japan’s arguments that tightness in labour markets will force companies to raise wages and prices soon. The data also reinforced convictions that the central bank will lag behind other major central banks in pulling back its massive stimulus. A summary of opinions from the Bank of Japan’s July 19-20 meeting, also published on Friday, said the main reason inflation had been slow to pick up was low commodity prices and weak consumer spending — a factor Friday’s data suggests may be changing. At that meeting, the central bank left monetary policy steady but onc...
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