Japan’s household spending rose 1.3% year-on-year in June 2025, down sharply from a 4.7% increase in May and missing forecasts of 2.6%. The slowdown reflected the impact of US tariffs and persistent inflation on consumer activity. The strongest gains came from housing (11.6%), medical care (8.9%), transportation & communication (8.6%), utilities (6.3%), and education (3.5%). Meanwhile, spending fell for clothing & footwear (-6.6%), furniture & household utensils (-5%), food (-2.1%), and culture & recreation (-1%). On a monthly basis, spending plunged 5.2%, reversing May’s 4.6% rise and undershooting expectations of a 3% decline.