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

more to come

Japan Labour Cash Earnings for January +0.8% y/y

• expected 1.8%, prior 4.1%

Real Cash Earnings, this is wages after inflation -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:

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.