MNI BRIEF: Japan March Real Wage Stays In Negative

Inflation-adjusted real wages, a barometer of households' purchasing power, stayed in negative territory in March for the third straight month, down 2.1% vs. -1.5% in February, preliminary data released by the Ministry of Health, Labour and Welfare on Friday showed.

Real wages, including imputed rents, a new measure recently released by the ministry, fell by 1.5% in March, a sharper decline than the 0.8% drop recorded in February.

The year-on-year rise in total CPI minus imputed rents slowed to 4.2% in March from 4.3% in February. Total cash earnings, or nominal wages, rose 2.1% in March, slowing from 2.7% in February, while scheduled earnings rose 1.3%, flat over the month.

Overtime pay fell 1.1% y/y in March after rising 2.4% in February and bonuses, and other special pay rose 13.9% following February's +74.1%.

Constant sample data, which removes sampling volatility and is closely watched by Bank of Japan officials, rose 1.8% in March after rising 1.9% in February.

The read was in line with BOJ expectations on the assumption that the CPI will likely remain elevated from January through June. 

Bank officials are focused on April wage data, which will include hefty wage hikes at major firms.