MNI BRIEF: Japan Aug Real Wages Negative For Eighth Month

Japan’s inflation-adjusted real wages, a key gauge of households’ purchasing power, fell 1.4% year-on-year in August, marking the eighth consecutive month of decline, preliminary data from the Ministry of Health, Labour and Welfare showed Wednesday. The drop followed a 0.2% fall in July.

The data underscore that wage growth continues to lag behind inflation, leaving households under pressure from elevated living costs and increasing calls for the government to step up measures to ease price burdens.

The year-on-year rise in total CPI excluding imputed rents slowed to 3.1% in August from 3.6% in July.

Nominal wages, or total cash earnings, rose 1.5% in August after a 3.4% increase in July, while scheduled earnings grew 2.0% after 2.1% previously. 

Overtime pay rose 1.3% from a year earlier following 3.0% in July, while bonuses and other special payments fell 10.5% after rising 6.3% in the previous month.

Constant-sample data, which remove sampling volatility and are closely watched by the Bank of Japan, increased 2.3% year-on-year in August, unchanged from July.