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MNI BRIEF: Japan Mar Wages Rise; Real Pay Stays Negative

(MNI) Tokyo
(MNI) TOKYO

Inflation-adjusted real wages, a barometer of households' purchasing power, fell by 2.9% y/y in March following a 2.9% fall in February due to higher inflation, data released by the Ministry of Internal Affairs and Communications on Tuesday showed.

Bank of Japan officials expect considerable wage increases this year to ease the impact of high prices and contribute to supporting private consumption.

Real wages stayed negative for the 12th straight month in March, possibly keeping private consumption weak. Total CPI minus imputed rents rose 3.8% y/y in March after rising 3.9% in February.

Total cash earnings, or nominal wages, posted a 0.8% y/y gain in March following 0.8% in February. Base wages, the key to a steady recovery in cash earnings, rose 0.5% y/y after rising 0.8% in February.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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