Free Trial

MNI BRIEF: Japan Aug Real Wages Fall 2.5% Vs. July -2.7%

(MNI) Tokyo

The y/y fall of inflation-adjusted real wages, a barometer of household purchasing power, narrowed to 2.5% in August from a 2.7% fall in July, as inflation slowed, data released by the Ministry of Health, Labour and Welfare showed on Friday.

Real wages stayed in negative territory for the 17th straight month in August, illustrating that household income has failed to keep pace with rising prices, particularly impeding low-income household and elder spending.

Pent-up demand continued to support services spending, but spending on goods, such as daily necessities, remained weak.

Total CPI minus imputed rents rose 3.7% y/y in August after rising 3.9% in July. Total cash earnings, or nominal wages, posted a 1.1% y/y gain in August following 1.1% in July.

Scheduled earnings rose 1.6% y/y in August following the prior month's 1.3% gain, while overtime pay rose 1.0% y/y after July's flat read. Bonuses and other special pay fell 5.4% y/y in August following July’s 0.6% increase.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.