- High CPI hitting real wages
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
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Inflation-adjusted real wages are a key determinant of households’ purchasing power. The prolonged decline will trouble Bank of Japan rate hike desires.
