Japan nominal pay rises at fastest pace in four months, but…

The Japanese Labor Ministry data released this Tuesday morning showed, the labor cash earnings/nominal pay rose at a fastest pace in four months, but the real wages remained flat.

Real wages, which are adjusted for moves in consumer prices, were flat in April from a year earlier, following a revised 0.3% drop in March. Nominal cash earnings rose 0.5% in April following a 0.0% reading in March.

The weakness in the real wages explains why core inflation refuses to pick up pace.