Japan's Wages Rise 3.2% in May as Household Spending Falls

Japan's total cash earnings rose 3.2% year over year in May, while household spending fell 0.4% in real terms, according to separate government data released on Tuesday. Total cash earnings increased to 311,165 yen, marking the fourth consecutive month of wage growth above 3%, according to preliminary data from the Ministry of Health, Labour and Welfare. Regularly paid wages rose 3.0% to 295,945 yen, while regular earnings increased 3.0% to 275,942 yen. Special cash earnings climbed 5.2% to 15,220 yen. Real wages rose 1.4% from a year earlier after adjusting for the consumer price index excluding owners' equivalent rent and increased 1.7% based on the overall consumer price index. Separately, the Ministry of Internal Affairs and Communications said average monthly consumption expenditure for households with two or more people totaled 320,345 yen in May, up 1.3% in nominal terms but down 0.4% in real terms from a year earlier. Spending on education climbed 21.7% in real terms, while furniture and household utensils rose 23.0% and food increased 2.4%. In contrast, spending on transportation and communication fell 15.8%, fuel, light, and water charges declined 7.6%, and.