While nominal cash wages rose 0.2% y/y the real wage data is awful, down 3.0% y/y

more to come

Labour Cash Earnings +0.2% y/y

  • expected +1.5%, prior +1.5%

Overtime Pay + 0.9% y/y

  • prior -0.1%

Inflation adjusted, i.e. real, wages -3.0% y/y


The Bank of Japan have repeatedly told us that they want to see wages rise inorder to boost household's purchasing power, and thus demand, and thus demand-pull inflation. They are waiting for the Spring wage negotiations to provide that boost to wages.

USD/JPY up a little on the data, just a spread or two though:

usdjpy Japan wages 10 January 2024