Japan inflation flat, household spending slips

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. Household spending also fell 0.2 percent in July after declining 2.0 percent in the previous month, the ministry said. The consumption levy rise -- Japan's first in 17 years -- was aimed at taming a huge national debt but it slammed the brakes on consumer spending and pushed the economy into a brief rece