Japan’s household spending has unexpectedly fallen for a seventh month even as real wages continued to increase, reflecting the impact of persistent inflation on consumer sentiment.

Outlays by households adjusted for inflation dropped 3.3% in June from a year earlier, the internal affairs ministry reported Friday. Economists had forecast a 0.9% increase. Compared with May, spending declined 6.4% on a seasonally adjusted basis.

The decline in overall spending was led by drops in spending on food, utilities, transportation and communications and apparel. Outlays for education rose along with spending on home maintenance.