Japan data – May household spending comes in at a huge beat, +4.7% y/y

• expected +1.2%, prior -0.1%

+4.6% m/m

• expected +0.4%, prior -1.8%

more to come

These are big beats, both m/m and y/y and will reignite speculation of nearer-term Bank of Japan rate hikes. Markets had settled on the next round of hikes coming in 2026.

This article was written by Eamonn Sheridan at www.forexlive.com.