MNI BRIEF: Japan June Real Wages Turn Positive; 1st in 27 Mths

Inflation-adjusted real wages, a barometer of households' purchasing power, turned positive in June for the first time in 27 month, up 1.1% against May's 1.4% fall, preliminary data released by the Ministry of Health, Labour and Welfare on Tuesday showed.

Summer bonuses (+7.6% in June vs. +0.1% in May) following high corporate profits boosted June’s result., which showed households’ income had caught up with price rises, easing the impact of inflation on consumers.

BOJ officials are focused on whether weak private consumption will recover in the coming months.

Total CPI minus imputed rents rose 3.3% y/y in June, unchanged from 3.3% in May.

Scheduled earnings rose 2.3% y/y after rising 2.1% in May and total cash earnings, or nominal wages, posted a 4.5% y/y gain in June, accelerating from 2.0% in May and marking the highest level since January 1997.

BOJ Governor Kazuo Ueda did not rule out further rate hikes this year, following the Bank's last board meeting. (See MNI BOJ WATCH: Ueda Keeps Rate Hike Options Open)