MNI BRIEF: Japan May Negative Real Wage Widens to -1.4%
Japan’s year-on-year fall in inflation-adjusted real wages, a barometer of household purchasing power, widened to 1.4% in May from April’s 1.2%, preliminary data from the Ministry of Health, Labour and Welfare showed on Monday.
May’s real wages have stayed in negative territory for 26 straight months, the longest period on record, showing household income hasn’t kept pace with price rises.
However real wages are expected to trend towards positive territory as early as Q4.
Total CPI minus rents rose 3.3% y/y in May, accelerating from 2.9% in April.
Scheduled earnings rose 2.5% y/y in May after rising 1.8% in April, marking the highest level in 31 years and four months.
Total cash earnings, or nominal wages, posted a 1.9% y/y gain in May, accelerating from 1.6% in April, as planned wage hikes were incorporated into wages.