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 labor market has yet to fuel inflation, core consumer price gains held steady in June, government data showed on Friday, undermining the BOJ’s arguments that tightness in labor markets will force companies to raise wages and prices soon.
The data also reinforced convictions that the Bank of Japan (BOJ) will lag behind other major central banks in pulling back its massive stimulus.
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