Japan wages data for January: Real wages post their biggest fall since May 2014

more to come

Japan Labour Cash Earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term for January +0.8% y/y

• expected 1.8%, prior 4.1%

Real Cash Earnings, this is wages after inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term -4.1% y/y

• expected -3.2%, prior -0.6%

Overtime pay was +1.1% y/y during January.

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I posted over the weekend:

• Japan's unions are demanding the biggest wage hike in 25 years - BOJ and yen implications

I wish them well, but sheesh they are coming from a long way behind.

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The Bank of Japan is encouraging higher wages to support inflation. It sees the current bout of high (for Japan) CPI as transitory only, as cost-push inflation that their forecasts expect to slow from the middle of the 2023 fiscal year (this begins on April 1). Higher wages, the Bank argues, would support demand-pull inflation. This form of inflation, BOJ officials say, would help ensure more sustainable and stable inflation around the Bank's 2% target. If the BOJ can achieve stable 2% inflation there is a case for a reduction in its ultra-loose, ultra-stimulatory policy. At the margin this would be yen supportive.

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After the data print JPY is little changed.