Japan’s real wages up 1.1 pct in June

TOKYO, Aug. 6 (Xinhua) — Japan’s average monthly wages in inflation-adjusted terms edged up 1.1 percent year on year in June, official data showed on Tuesday.
As a barometer of consumer purchasing power, the figure saw its first gain in 27 months, according to the Ministry of Health, Labor and Welfare.
Reversing the 1.3-percent decline in May, the gain came amid an increase in summer bonuses for Japanese employers by showing signs of outpacing inflation after the longest-ever decline in real wages, the data showed.
Nominal monthly earnings, including base pay and overtime, grew 4.5 percent to 498,884 yen (about 3,440 U.S. dollars).
Regular pay including basic salary in June went up 2.3 percent year on year, while overtime pay, a gauge of business activity, went up 1.3 percent.
Meanwhile, the consumer price index excluding imputed rent, used to calculate the real wage index, grew 3.3 percent year on year, the preliminary data showed.
According to the ministry, more companies paid out bonus checks in June compared to a year earlier, and special cash earnings, including summer bonuses, rose 7.6 percent in June.
Japan’s household spending, however, continued to fall in June by shrinking 1.4 percent from a year earlier, separate data released by the Ministry of Internal Affairs and Communications on Tuesday showed.
Despite the rise in wages, local analysts pointed out that people might be saving more, while noting the trend of reducing spending due to a frugal mindset persisted among local residents due to soaring prices (1 U.S. dollar equals 145.15 Japanese yen). ■