Japan's January real wages drop at fastest pace since 2014

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Japan's January real wages drop at fastest pace since 2014
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TOKYO : Japan's real wages saw their biggest fall in nearly nine years in January due to four-decade-high inflation, labour ministry data showed on Tuesday, squeezing the buying power of consumers.Wage trends in the world's third-largest economy are under close market scrutiny because Bank of Japan offici

TOKYO : Japan's real wages saw their biggest fall in nearly nine years in January due to four-decade-high inflation, labour ministry data showed on Tuesday, squeezing the buying power of consumers.

The fall in real wages comes despite major Japanese firms including Toyota, Nintendo and Fast Retailing paying heed to policymakers' calls and union demands by announcing plans for historic pay rises. Total cash earnings, or nominal wages, posted a 0.8 per cent year-on-year gain in January, much weaker than a revised 4.1 per cent growth in December, when strong one-off winter bonuses drove up overall salaries.

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