TOKYO, May 8 (Xinhua) — Japan’s inflation-adjusted real wages increased 1 percent from the previous year in March, reflecting improved corporate profits and companies’ efforts to offer more competitive salaries, although wage growth was outpaced by rising prices, government data showed Friday.
Nominal wages, or the average monthly cash earnings per worker, including base and overtime pay, grew 2.7 percent to 317,254 yen (about 2,022 U.S. dollars), according to the Ministry of Health, Labor and Welfare.
However, inflation-adjusted wages grew at a slower pace than the 1.6 percent rise in consumer prices.
The weaker yen, compounded by the Middle East conflict and surging crude oil prices, has accelerated inflation and pushed up import costs, leading companies to raise the prices of products and services.
If the situation in the Middle East is prolonged, it could further worsen business conditions for firms and dim the prospects of pay rises.
