TOKYO, Dec 5 (Reuters) - Japanese household spending unexpectedly fell 3.0% in October from a year earlier, government data showed on Friday, worse than the median market forecast for a 1.0% rise.

On a seasonally adjusted, month-on-month basis, spending dropped 3.5%, versus an estimated 0.7% uptick, internal affairs ministry data showed.

The indicator will be among factors the Bank of Japan (BOJ) will scrutinise in deciding whether to raise interest rates in December, or hold off until next year.

While it has kept rates steady since the last hike in January to gauge the economic impact of U.S. tariffs, stubbornly high inflation and a weakening yen have shifted opinion in the BOJ board to increasingly favour a hike.