Japan April inflation adjusted wages -1.8% y/y, down for a fourth month

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 troubl;e Bank of Japan rate hike desires.

This article was written by Eamonn Sheridan at www.forexlive.com.