Japan¡¯s real wages slipped in September for an 18th month, while consumer spending extended a monthslong decline, with rising prices squeezing households¡¯ purchasing power, and likely to add to pressure from labor groups for higher wage increases.
Financial markets worldwide pay close attention to the wage trends in the world¡¯s third-largest economy. The Bank of Japan regards sustainable pay increases as one of the prerequisites for unwinding its ultraloose monetary stimulus.
Inflation-adjusted real wages, a barometer of consumer purchasing power, dropped in September by 2.4% from a year earlier after a revised 2.8% fall the month before, data from the Health, Labor and Welfare Ministry showed Tuesday.
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