Japan real wages growth slowest in nearly two years, to chill spending
Japan’s March real wages fell at the fastest pace in almost two years, pressured by meager nominal pay hikes and a slight rise in consumer prices, posing a setback for Prime Minister Shinzo Abe’s attempts to revitalize the economy.
The wages figures back recent data showing household spending fell more than expected and core consumer prices rose at a slower-than-expected pace in March, suggesting an exit from the central bank’s radical quantitative easing program remains distant.
Inflation-adjusted real wages dropped 0.8 percent in March from a year earlier to mark their biggest rate of decline since June 2015, labor ministry data showed on Tuesday.
In nominal terms, wage earners’ cash earnings fell 0.4 percent year-on-year in March, also notching the biggest rate of decrease since June 2015.