TOKYO, Sept 6 Reuters Japanese household spending rose less than expected in July as consumers remained wary of loosening their purse strings in the face of higher prices, possibly complicating the central bank39;s plans to hike interest rates further in coming months.

Consumer spending edged up 0.1 in July yearonyear, compared with the median market forecast for 1.2 growth, government data showed on Friday. On a seasonally adjusted, monthonmonth basis, spending decreased 1.7 versus an estimated 0.2 drop.

There is a very good chance that consumer spending will be negative again in the next month, said Takeshi Minami, chief economist at Norinchukin Research Institute, adding that households appear to be sceptical about whether wage gains will continue next year.

Data a day earlier showed Japan39;s inflationadjusted wages grew for the second straight month in July, primarily thanks to a bump in summertime bonuses. Base pay, or regular pay, marked the fastest pace of increase in nearly 32 years, reflecting results from this spring39;s labourmanagement wage talks.

But the government said the big test would be whether real wages continue rising in August and beyond, without the seasonal factor of summer bonuses.

While consumers spent more on television and travelling, they cut back on food and utility expenses due to higher prices in July, an internal affairs ministry official said, adding they also put their income into savings.

Private consumption, which accounts for…