Japan's household spending falls unexpectedly in July

Tokyo

JAPAN'S household spending unexpectedly fell in July from a year earlier after last month's spike, casting some doubt on the sustainability of a domestic demand-driven economic recovery seen as vital to boosting tepid inflation.

The data keeps pressure on policymakers betting that a tightening labour market will boost wages and lift consumption, thereby allowing companies to raise prices and help the Bank of Japan (BOJ) achieve its ambitious 2 per cent inflation goal.