Japan's real wages fall for 10th straight month in October

Alsharq Tribune-Otaify 

Japan's inflation-adjusted real wages fell 0.7 percent in October from a year earlier, marking the 10th consecutive monthly decline as price increases continued to outpace income growth, government data showed Monday.

Average nominal wages, or total cash earnings per worker including base and overtime pay, rose 2.6 percent from a year earlier to 300,141 yen (about 1,930 U.S. dollars), up for the 46th straight month, the Ministry of Health, Labor and Welfare data showed.

Regular pay, or base salary, also climbed 2.6 percent in October, while overtime pay, a gauge of private-sector strength, gained 1.5 percent in October.

The ministry's monthly survey covers about 30,000 businesses nationwide with five or more employees.

Despite gains in nominal pay, the consumer price index excluding imputed rent, used by the ministry to calculate the real wage indicator, surged 3.4 percent in October, driven by higher food costs, leaving real wages in negative territory.

Looking ahead, ministry officials said the effect of year-end bonuses is expected to appear "to some extent" in November, but whether real wages turn positive or negative will depend on inflation.