MNI BRIEF: Japan Feb Real Wage Stays Negative

Japanese inflation-adjusted real wages, a barometer of households' purchasing power, stayed negative in February for the second straight month, down 1.2% vs. -2.8% in January, preliminary data released by the Ministry of Health, Labour and Welfare on Monday showed.

The year-on-year rise in total CPI minus imputed rents slowed to 4.3% in February from 4.7% in January. 

Total cash earnings, or nominal wages, rose 3.1%, accelerating from 1.8% in the prior month, boosted by bonuses. Scheduled earnings rose 1.6% in February against 2.1%, the lowest level since January 2024.

Overtime pay rose 2.2% y/y after rising 1.5% in January and bonuses and other special pay rose 77.4% from the prior month's 7.2%.

Constant sample data, which remove sampling volatility, rose 1.8% in February after rising 2.7% in January.

The result aligned with the Bank of Japan officials' expectations, as the consumer price index was projected to remain high from January to March. (See MNI POLICY: BOJ May Rate Hike Hopes Fade As Risk Mounts)