Japan real wages drop in December, boding ill for consumer spending

by Dramelin 5:00 PM 0 comments

The labor ministry data showed inflation-adjusted real wages dropped 0.4 percent in December from a year earlier, following a revised flat reading in November. Higher prices for items such as fresh vegetables have increased living costs. Japanese wages, on an annual inflation-adjusted basis, dropped in December for the first time in a year, government data showed on Monday, a setback for hopes that consumer spending can increase and help lift economic growth. In nominal terms, wage earners` cash earnings rose 0.1 percent year-on-year in December, following a 0.5 percent gain in November. The decline was caused by a rise in the cost of living, which outpaced nominal pay hikes, officials said.