Japan's real wages slipped in September for an 18th month, while consumer spending extended a monthslong decline, with rising prices squeezing households' purchasing power, and likely to add to pressure from labor groups for higher wage increases.
Financial markets worldwide pay close attention to the wage trends in the world's third-largest economy. The Bank of Japan regards sustainable pay increases as one of the prerequisites for unwinding its ultraloose monetary stimulus.
Inflation-adjusted real wages, a barometer of consumer purchasing power, dropped in September by 2.4% from a year earlier after a revised 2.8% fall the month before, data from the Health, Labor and Welfare Ministry showed Tuesday.