Japan data - January Household Spending -6.3% y/y (expected -4.1%)

Japan January Household Spending -6.3% y/y, the largest y/y fall since February 2021

• expected -4.1%, prior -2.5%

-2.1% m/m

• expected +0.4%, prior -0.9%

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A Japanese govt official:

• January household spending drop does not necessarily reflect consumption trend

• Automobile-related spending due to factory suspension and energy fees affected january household spending

If the extremely rapid dismissal of the data is any guide it looks like a BoJ tightening is on the cards this month.