Real wages fell for a fourth consecutive month in Japan in April
-1.8% y/y,
from -1.8% also in March and -1.5% in
February
Base pay +2.2% y/y, the fastest in four months
Overtime pay +0.8%
Total average cash earnings, or nominal pay, +2.3%
from +2.3% also in March
—
Inflation-adjusted real wages are a key determinant of households’ purchasing power. The prolonged decline will troubl;e Bank of Japan rate hike desires.
This article was written by Eamonn Sheridan at www.forexlive.com.