Japan's household spending unexpectedly fell 1.8% in May, affecting economic growth and central bank's interest rate decisions.

Japan's household spending unexpectedly fell 1.8% in May, raising concerns about the economy's growth prospects and complicating the central bank's decision on interest rate hikes. This decline is attributed to higher prices and lower consumer purchasing power, with spending on food, utilities, and household durable goods experiencing drops. These negative factors could impact Japan's economic growth and the central bank's future monetary policies.