MNI BRIEF: Japan Jan Real Wage Turns Negative
MNI (BEIJING) - Japan’s inflation-adjusted real wages, a barometer of household purchasing power, declined 1.8% in January, following 0.3% growth in December and marking the first negative reading in three months, preliminary data released by the Ministry of Health, Labour and Welfare on Monday showed.
The fall in real wages aligned with the Bank of Japan officials' expectations after they predicted the consumer price index would remain elevated from January through March.
The year-on-year rise in total CPI minus imputed rents accelerated to 4.7% in January from 4.2% in December.
Total cash earnings, or nominal wages, rose 2.8% in January, slowing from 4.4% in December, which had been boosted by bonuses, with scheduled earnings rising 3.1% in January, following 2.6% in December.
Overtime pay increased by 3.1% y/y in January, up from a 0.8% rise in December. Bonuses and other special pay fell 3.7% in January, following a 6.2% increase in December.
Constant sample data, which removes volatility and is closely watched by BOJ officials, rose 2.7% in January after rising 2.9% in December.