While nominal cash wages rose 0.2% y/y the real wage data is awful, down 3.0% y/y
more to come
Labour Cash Earnings +0.2% y/y
- expected +1.5%, prior +1.5%
Overtime Pay + 0.9% y/y
- prior -0.1%
Inflation adjusted, i.e. real, wages -3.0% y/y
***
The Bank of Japan have repeatedly told us that they want to see wages rise inorder to boost household’s purchasing power, and thus demand, and thus demand-pull inflation. They are waiting for the Spring wage negotiations to provide that boost to wages.
USD/JPY up a little on the data, just a spread or two though: