- 14 Mar 2002
- 21,056
- 18,912
Rejoice! Inflation-adjusted real wages rose 1.4% from a year earlier:
Japan's real wages rose in January for the first time in 13 months as inflation slowed, government data showed Monday. Base salaries posted their fastest increase in more than three decades. The shift may add weight to the Bank of Japan's push to raise interest rates and move away from years of ultra-loose policy. The central bank last lifted its benchmark rate in December to 0.75%, still low by international standards.
Inflation-adjusted wages, a measure of household purchasing power, climbed 1.4% from a year earlier. The figure marked a rebound from December, when real wages slipped 0.1%. Average nominal wages, reported as total cash earnings, rose 3.0% to ¥301,314 ($1,911). The pace was the strongest since July, accelerating from a 2.4% increase in December.
Pay growth outstripped the consumer inflation rate used by the labour ministry to calculate real wages. That index rose 1.7% in January, the slowest gain since March 2022. Fuel subsidies and lower food prices helped ease the pressure. Regular pay, which reflects base salary, increased 3.0%. The rise was the largest since October 1992 and followed a revised 2.1% gain in December. Overtime pay climbed 3.3%, up from a revised 1.5% the previous month and the highest level in about three years.
Japan's real wages rose in January for the first time in 13 months as inflation slowed, government data showed Monday. Base salaries posted their fastest increase in more than three decades. The shift may add weight to the Bank of Japan's push to raise interest rates and move away from years of ultra-loose policy. The central bank last lifted its benchmark rate in December to 0.75%, still low by international standards.
Inflation-adjusted wages, a measure of household purchasing power, climbed 1.4% from a year earlier. The figure marked a rebound from December, when real wages slipped 0.1%. Average nominal wages, reported as total cash earnings, rose 3.0% to ¥301,314 ($1,911). The pace was the strongest since July, accelerating from a 2.4% increase in December.
Pay growth outstripped the consumer inflation rate used by the labour ministry to calculate real wages. That index rose 1.7% in January, the slowest gain since March 2022. Fuel subsidies and lower food prices helped ease the pressure. Regular pay, which reflects base salary, increased 3.0%. The rise was the largest since October 1992 and followed a revised 2.1% gain in December. Overtime pay climbed 3.3%, up from a revised 1.5% the previous month and the highest level in about three years.
Japan’s real wages advance for first time in 13 months
Real wages increased 1.4% from a year earlier in January, exceeding economists’ median forecast of a 0.9% gain, the labor ministry reported Monday.