Japan inflation, household spending slow in July, incomes up
TOKYO (AP) -
Japan reports that its inflation rate fell slightly in July while household spending also edged lower, though incomes were boosted by higher bonus payments.
The government reported Friday that the inflation rate in July was 0.2 percent, compared with 0.4 percent in June. Core inflation excluding volatile food prices was flat. Price increases moderated with the fall in oil prices.
Household spending fell 0.2 percent in real terms on an annual basis, though incomes rose 5.4 percent in real terms, likely thanks to semi-annual bonus payments.
Japan's economy contracted 1.6 percent in April-June, but many economists are forecasting a renewed expansion in the current quarter. So far, the consumer spending that accounts for most of Japan's growth has failed to pick up much despite modest increases in some worker's wages.