Wage growth slowed in June, highlighting the risk to consumer spending as inflation squeezes household budgets.

Average overall monthly earnings rose 0.4 percent from a year earlier to ¥437,362 after a 0.6 percent gain in May, the labor ministry reported Thursday, below the median forecast of 0.8 percent in a Bloomberg News survey of six economists.

Excluding bonuses and overtime, pay increased 0.3 percent, the first gain in 27 months.