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In Japan, 12 of the paid salary of menstrual inflation is down, which has been the biggest in five months. It shows that consumers are likely to cut down their expenditure due to the fact that wage growth has failed to keep pace with the rising price of goods and services. This is a worrying sign.
The lack of wage growth means that it is not easy for the government to promote a 3% or more pay increase in annual salary negotiations.
The low salary data also showed that the inflation target of 2% of the Bank of Japan is still unreachable.
The labour ministry data released Wednesday, December 2017 real wages decreased by 0.5% over the same period over the previous year. That was less than 0.1% year-on-year growth in November, and the biggest decline since 1.1% in July 2017.
In 2017, the real salary was down by 0.2% and in 2016, the increase was 0.7%.
Data show that in December 2017 nominal cash income compared to the same period in 2016 increased by 0.7%, less than the previous year growth rate 0.9%.

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