Japan inflation flat in July, household spending slips

TOKYO: Japanese inflation fell back to zero in July while household spending dropped again, official data showed on Friday, as a slowdown in China threatens Japan’s already precarious economic picture.

The disappointing data are sure to stoke speculation that the central bank would be forced to unleash more stimulus later this year to counter a downturn in the world’s number-three economy, which contracted in the April-June quarter.