Japan data – February real wages decline again, -1.2% y/y (2nd time in a row) | Forexlive

Japan’s inflation-adjusted real wages fell 1.2% year-on-year in February, marking the second consecutive monthly decline. The drop follows a revised 2.8% fall in January and highlights the continued pressure on household purchasing power from elevated inflation.

The consumer inflation rate used to calculate real wages — which includes fresh food but excludes rent — rose 4.3% in February, only slightly easing from January’s 4.7%. Despite nominal income growth, this persistent inflation eroded wage gains.

Total cash earnings, or nominal wages, rose 3.1% year-on-year in February, accelerating from a revised 1.8% increase in January. The figure was supported by a surge in special payments, such as bonuses, which jumped 77.4% compared to the previous year.

Overtime pay, often seen as an indicator of business activity, climbed 2.2% in February, up from January’s revised 1.5%. Regular pay, however, rose at a slower pace of 1.6%, down from 2.1% in the previous month.