MNI BRIEF: Japan Dec Positive Real Wages Widen To 0.6%
MNI (TOKYO) - Inflation-adjusted real wages, a barometer of household purchasing power, posted their second straight monthly rise in December, up 0.6% against November's 0.5%, preliminary data released by the Ministry of Health, Labour and Welfare on Wednesday showed.
The year-on-year rise in total CPI minus imputed rents accelerated to 4.2% in December from 3.1% in November, but real wages were boosted by higher nominal wages and bonuses.
Total cash earnings, or nominal wages, rose 4.8% in December, accelerating from 3.9% in November and scheduled cash earnings to 2.7% last month, up from 2.5% in November.
Overtime pay rose 1.3% y/y in December after rising 1.4% in November and bonuses and other special pay rose 6.8% y/y following +24.9%, which was driven by bonuses.
Constant sample data, which removes sampling volatility and is a key BOJ focus, rose 2.9% in December after increasing 2.9% in November.
Bank of Japan officials are closely monitoring wages increases, following last month's increase to the policy rate to 0.5%. (See MNI BOJ WATCH: Ueda Flags More Hikes, No Clear Timeline)