Japan's wages up first time in 4 months, positive for inflation prospects

FXstreet.com (Bali) - There has been some positive data out of Japan after October labor cash earnings rose by +0.1% (yearly basis) vs. -0.2% last month, with overtime pay +5.4% y/y. It is the first positive reading in 4 months.

The improvement of wage conditions in Japan is critical for Abenomic policies to ultimately turn successful, as sustainable inflation needs the contribution of higher salaries in the country in order to encourage consumption.

While there is still a long way to go, it is nevertheless a positive sign in what is still a labour market with overall depressed salary increments.