MNI BRIEF: Japan's Jan Wages Rise; Real Pay Stays Negative

Real wages stayed in negative territory for the 10th straight month in January amid higher inflation, stoking concerns over slower consumer spending in the coming months, according to data released Tuesday by the Ministry of Health, Labour and Welfare.

Average wages rose 0.8% y/y in January after rising 1.4% in December, with total monthly average cash earnings per regular employee increasing 0.8% y/y in January compared to 4.1% y/y growth in December.

Real - or inflation adjusted - average wages fell 4.1% in January, widening from a decline of 0.6% in December due to the rise in the Consumer Price Index.

Total CPI minus imputed rents rose 5.1% y/y in January after rising 4.8% in December.

Overtime pay rose 1.1% y/y in January, slowing from 2.9% in December, and bonuses and other special pay fell 1.7% y/y in January following December’s 6.5% increase.