31 Jul 2013
Japanese wages still depressed, negative for inflation
FXstreet.com (Barcelona) - The Japanese Ministry of Health, Labour and Welfare just published the Labor Cash Earnings (YoY) (Jun), which stood at +0.1% vs 0.2% exp and 0% last.
The indicator is closely followed by the Bank of Japan to gauge whether or not inflation is working through the economy by an increase in wages. The indicator includes the average income, before taxes, per regular employee. The lower income puts downward pressure over consumption, therefore the downbeat read trend in earnings is deflationary for the Japanese economy.
The indicator is closely followed by the Bank of Japan to gauge whether or not inflation is working through the economy by an increase in wages. The indicator includes the average income, before taxes, per regular employee. The lower income puts downward pressure over consumption, therefore the downbeat read trend in earnings is deflationary for the Japanese economy.