Japan September Real Wages Edge Up as Consumer Prices Fall

Japan's real wages climbed for the eighth month in a row in September according to official data, propped-up by declining consumer prices as the economy exhibit meager signs of rising inflation.
Real wages, which are revised for inflation, climbed 0.9% year-on-year in September, growing faster than a revised 0.6% increase in the prior month. Meanwhile, nominal cash earnings climbed 0.2 in September from a year prior. Revised figures indicated that last month, nominal wages were flat year-on-year.

Separate data showed core consumer prices extended its seventh month of decline while spending among Japanese households slumped in September.

Special payments, including bonuses, dropped at an annual rate of 2.9% in September, compared to a 0.5% annual decline in the previous month. Overtime pay dropped 1.3% year-on-year in September. Regular pay, on the other hand, rose an annual 0.4%.

BOJ policymakers initially anticipated its bold monetary easing and massive fiscal spending to jumpstart economic growth, which would drive up real wages and stimulate inflation. On the contrary, consumer prices slowed down due to tepid growth, which consequentially drove up real wages but will not be beneficial to the economy.

News are provided by InstaForex